Contradictory or not, it's true. Pandora isn't offering anything you can't get on any other Internet radio service. AND they are losing ALOT of money.
That establishes nothing about barriers to entry. One of those reasons for the loss is the contracts they set up. As I said getting a contract that will work is a barrier.
Those other competitors got past the barriers. That doesn't mean they don't exist.
Most of their listeners are freeloaders who either can't or won't pay up.
It isn't so much the freeloaders, it has just as much to do with advertisers not willing to pay because for ads because they know nobody is looking at and/or listening to them. It isn't just that they don't buy Pandora they don't buy anything else either. For example:
"... For streaming music service Pandora, advertising revenues haven’t kept up with increasing licensing costs, even causing the company to cap its free mobile service at 40 hours per month ... "
http://www.theverge.com/2013/3/5/40...ples-to-apples-with-traditional-radio-for-ads
Their ads aren't effective. That is primarily contributing to why they are having problems.
Pandora's problem is more so that they are trying to buy users. Chasing growth primarily for growth sake is a trap. They have ignored that their ads mechanism has problems and just plowed forward adding up folks. I think hoping that larger subscriber numbers will "save" the ad business. That is a bonehead move.
Thy cant survive that kind of cash bleeding. Apple on the other hand has rather deep pockets and the muscle & connections to not only survive, but profit.
Apple isn't going to do a loss leader. No way. If this doesn't generate money soon they will kill it.
Again, the only real service out there that offers content is Sirius. If Apple buys them out, they will virtually OWN the car market.
I think that may be part of the problem. For car market the ads all have to be primarily audio focused. Nobody is going to see anything while driving.
But Sirius vs. Pandora vs Spotify vs etc doesn't really matter as much to Apple as long as the player is either an iPod/iPhone and/or this is all hooked to a larger iTunes library somehow.
iRadio just guarantees there is a high integration with iTunes library and iCloud services.