Sep 102012
 

The New York Times yesterday reported that Apple is negotiating with record labels for a Pandora-like service, and calls it a move that “could shake up the growing field of internet radio.” The service would customize music to users’ tastes – like Pandora does. Just like Pandora, Apple’s offering would carry advertising, but through Apple’s iAd platform. Terms of the deal are unclear (e.g., if Apple would share ad revenue with labels or pay them through a licensing fee). Also unclear, whether or not the service will be ad supported and free, or with an ad-free subscription offering (which Pandora offers for $36).

Pandora is probably one of the five biggest mobile ad businesses in the US, asBusinessInsider describes; but still struggles with how to sell ads profitably. As the company said in an investor call earlier this week, “To date, we have not been able to generate additional revenue from our advertising products as rapidly as we have been able to grow our listener hours on mobile.” In short – it has all the listeners it wants, but struggles to monetize that listenership.

But, it tries hard.

MORE:  Apple Plans Pandora Rival (And Why That’s Bad For Advertising) – MarketingVOX.