Streaming-radio leader Pandora Media (NYSE:P) is a business with a bull's-eye on its back in more ways than one.

Pandora is an early entrant in what's becoming an increasingly crowded field of competitors in an evolving market. The most high profile of these names, of course, is Apple, which launched its iTunes Radio earlier this year, but by no means is it the only one.

Source: Pandora

In that vein, Pandora's surging stock took a serious hit earlier this month when European music upstart Spotify also announced a deal that would deepen its competition with Pandora.

Look out below
Spotify has released an updated version of its mobile app for smartphones and tablets that is totally free and ad-supported. It enables users to access some music on-demand, but the majority of the allowed usage will be as an online radio service, highly similar to Pandora.

But as tech and telecom analyst Andrew Tonner discusses in the video below, the new competition from Spotify probably isn't as big a deal to Pandora as some investors initially thought.

Fool contributor Andrew Tonner owns shares of Apple. Follow Andrew and all his writing on Twitter at @AndrewTonnerThe Motley Fool recommends Apple and Pandora Media. The Motley Fool owns shares of Apple. 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.