Funkymgmt-blog-blog - Funky Management

Shares of Pandora Media Inc. P -16.71% tumbled Friday, following news that Apple Inc.AAPL +0.62% is in discussions to introduce a competing Internet-radio service.

"The 800-pound gorilla is pounding his chest, and people are starting to get nervous," said Richard Tullo, an analyst with Albert Fried & Co. "Apple has big competitive advantages. It already has a big reputation in the music industry."

Pandora's shares fell to as low as $9.95 before recovering slightly to finish the session at $10.47, off nearly 17%. Apple shares, meanwhile, rose 0.6% at $688.44.

Pandora, which went public last summer, has become a market leader in advertising-supported Internet radio. The company offers a widely used service whereby users can build "stations" that stream various songs based on selected artists.

However, the Oakland, Calif., company has struggled to become profitable as each additional user of its service tacks on more royalty fees paid every time it streams a song. In addition, Pandora has found it difficult to pull in advertising revenue at a rate commensurate with rapidly expanding use of its service on mobile devices.

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There is something very special about making and receiving a mix tape. It takes enough effort to prove that it’s something you care about, and it carries the personality and the emotions of the person who made it in a way that a .ZIP file or Spotify playlist never will. You remember how this works—trying to fit all your favorite songs together in a way so they add up to a story all their own, and learning to use words and music by other people to say something you can’t quite say by yourself. Technology has made it easy to share music now, but sharing a mixtape is another thing entirely.

& If I were to make it…. I hope that nothing changes. (Taken with Instagram)