Bloomberg recently reported that Apple (NASDAQ:AAPL) is preparing to expand its new iTunes Radio music streaming service into the U.K. and Canada, effectively beating Pandora (NYSE:P) to the punch. Apple may also be preparing to move into Australia and New Zealand, the other two countries where Pandora currently operates.
Pandora investors have been a little worried lately after Apple's entry into the market, as shares have begun to pull back from all-time highs. Apple's a heavyweight that most companies don't want to spar with, and it has significant advantages in scale and worldwide reach. Apple's longstanding relationships with record labels will also prove invaluable in the coming battle.
Apple negotiates its licensing deals directly with record labels, while Pandora relies on rights granted by government entities. That gives Apple more flexibility since it can hammer out specific details during contractual negotiations, even if it takes longer.
In this segment of Tech Teardown, Erin Kennedy discusses the possible rollout of iTunes Radio with Evan Niu, CFA.
Erin Kennedy owns shares of Apple. Evan Niu, CFA, owns shares of Apple. The Motley Fool recommends Amazon.com, Apple, Facebook, Google, and Pandora Media. The Motley Fool owns shares of Amazon.com, Apple, Facebook, and Google. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.