Earlier this week, Apple (AAPL -0.35%) announced the introduction of iTunes Radio, the company's latest foray into the service side of the business. While Apple has historically struggled as a service provider, the streaming music service promises to challenge the dominance of Pandora (P). The service will be primarily offered as a free, ad-supported app, but users who want to take advantage of cloud storage for $29 can get an ad-free version. One estimate suggests that at even a small conversion rate, iTunes Radio could generate as much as $1 billion in annual revenue.
In the following video, Fool.com contributor Doug Ehrman discusses what the introduction of this new offering from Apple could mean for Pandora
