UPDATE: Pandora Stock Takes Wild Ride After Spotify Announcement
UPDATE 4PM MONDAY: After a very rocky day, Pandora closed Monday up slightly at $9.93. Considering that the S&P 500 fell 1.49% for the day, it may be a sign that Pandora's stock price is stabalizing.
Pandora stock fell another 5% in early morning trading Monday continuing a decline that began late last week after Spotify launched an upgraded free Radio feature including unlimited song skips and playlists. Pandora’s stock was also one of Friday's biggest losers, falling 5%.
Pandora launched its IPO in June at $16 a share. and has fallen more than 40% since its debut to $9.40.
“This is Pandora plus everything Spotify offers,” one music expert said of Spotify Radio’s revamped service.
Spotify Radio will be rolled out this week along with Apps. Spotify has 10 million active users and 2.5 million paying subscribers across 12 countries.
More: How To Get New Spotify Radio With Unlimited Songs Skips Now
No surprise – On it’s way to $2.00
Won’t Spotify Radio cause Spotify to be re-classified as online radio, and force them to pay statutory royalties instead of doing direct deals?
It’s interesting to watch this all play out. We use both of these services at our office (depending on our current listening needs) and we think that both play a unique role. For us, Pandora is used for themed “radio” styled music while Spotify is used to listen to a specific request. Hopefully both of these will find their niche and we’ll all benefit!