Dallas, Texas 06/10/2015 (Financialstrend) – Pandora Media Inc (NYSE:P) is putting brave face even as more players encroach on its music business. There have been concerns that Apple Inc. (NASDAQ:AAPL) could pose the biggest threat to the company’s survival. However, Its CFO, Michael Herring, is talking tough reiterating that most consumers would rather listen to ads on internet radio rather than pay for streaming services.
Herring Shrugs Competition Threat
Herring expects Pandora Media Inc (NYSE:P) to withstand competition from Apple’s $10 a month streaming service. The fact that musicians and record labels are looking for platforms that can guarantee a large audience. Should herald the survival of Pandora according to the executive.
Based in Oakland Pandora Media Inc (NYSE:P) finished the first quarter with 79.2 million subscribers. How successful the company will be on its push to keep hold of its listener’s remains to be seen. The stock has already started to react negatively to the imminent competition from Apple.
The stock is down by 3.8% for the year as the Street remains skeptical of the company ability to fend off competition from a company of Apple’s caliber. Herring remains confident that Pandora Media Inc (NYSE:P) will retain its advantage in the industry once all the hype around Apple new service settles down.
Apple to Struggle on Subscription
Pandora Media Inc (NYSE:P) is now looking to do more on the monetization of its service as it looks to safeguard its earnings amidst stiff competition. Subscriptions may be an important part of the company’s business, but Herring is not considering the option of abandoning the ad-supported business.
Pandora is looking to fend off competition from Apple by offering its listeners high-quality music. Even though Apple has at its disposal credit cards on file from iTunes, Herring expects it to struggle in persuading people to subscribe to the service.
Pandora Media Inc (NYSE:P) generated subscriptions revenues in the range of $1 billion last year. It remains to be seen if it will replicate the same this year, as Apple moves to make its presence felt in more than half a billion devices across the globe.