Posted 06/10/2015 at 8:17 AM
Posted 2 years ago
In an interview for CNBC on Tuesday, the CFO of Pandora offered up his take on how the public would view the new streaming music service by Apple and wasn’t too complimentary in doing so.
Chief Financial Officer Michael Herring stated that while “we understand consumers are curious, and we expect as new services are offered, people will reach out and try different services,” he felt that 80 percent of consumers would turn down the chance to pay for Apple Music when they are able to listen to advertising on Internet radio for free.
The basis for his argument lies in research that finds that ad-supported Internet radio has so far proven to be more popular than subscriptions to streaming music sites.
Because of that, record labels and musicians gain further outreach to the public and get to sell more products.
Pandora feels that they’ll be able to withstand the presence of Apple Music, even with their stock slightly dropping when the news from the Worldwide Developers Conference broke.