Pandora (P -6.3%) slumps following reports Apple has struck an iRadio licensing deal with Warner...

|About: Pandora Media (P)|By:, SA News Editor

Pandora (P -6.3%) slumps following reports Apple has struck an iRadio licensing deal with Warner Music, and is trying to wrap up deals in time to announce the service at the June 10-14 WWDC conference. Apple still reportedly needs a publishing rights deal with Universal Music (a recorded music deal is said to have been struck), and publishing and recorded music deals with Sony. Two things still working in Pandora's favor: the time invested by its users in creating custom stations (creates a switching cost), and the fact Apple's service is expected to only work on Apple hardware (many Pandora users rely on both Apple and non-Apple hardware). (previous)