Westergren: iTunes Radio Will Have "Modest Impact" On Pandora
September 25, 2013
Pandora founder Tim Westergren commented on the launch of Apple's iTunes Radio, which arrived last week. Speaking at a Goldman Sachs conference in New York on Tuesday, Westergren said his company believes that iTunes Radio will have a "modest impact" on Pandora, according to Bloomberg.
Westergren noted that Clear Channel's iHeartRadio tested Pandora as a competitor, yet "They launched with a huge marketing budget and no commercials, and Pandora’s market share only continued to grow."
He also said that Pandora believes it will benefit from new web radio royalty deals between other companies, such as Apple's agreements for iTunes Radio, which reportedly pays a lower rate than Pandora. Westergren said that judges will use these new deals as precedent when deciding the next royalty rates, beyond 2015, reports Bloomberg.
"Right now all the benchmarks being set in direct deals are narrowing the possible outcome in the statutory realm," Westegren said, also referring to Clear Channel's new agreement with Warner Music Group.