Pandora shares actually moved higher on the news initially, but that's just near-term relief.
In this video, longtime Fool contributor Rick Munarriz goes over three aspects of iTunes Radio that should alarm Pandora investors -- and one of them should also spook Sirius XM Radio (NASDAQ: SIRI ) shareholders.
Digging deeper into Pandora's box
Pandora has won millions of devotees among music fans but few supporters on Wall Street. The online jukebox seems to be redefining the way we consume music, a transformation that's only likely to grow. But high royalty rates and competition from all corners threatens to silence the company. Can Pandora translate success with its listeners into a prosperous business model that will deliver for investors? Learn about the key opportunities and potential pitfalls facing the upstart radio streamer in The Motley Fool's premium research report. All you have to do is click here now to subscribe to this invaluable investor's resource.