Pandora -3.1% following Amazon report

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

A BuzzFeed report stating Amazon is set to launch a streaming music service (covers songs at least 6 months old) that will be free for Prime subs is leading Pandora (P) to slump.

Amazon's Prime sub base (~20M as of January, per Macquarie) is notably smaller than Pandora's active listener base (76M at the end of April) for now. Pandora, aided by its giant music-tagging database (i.e. the Music Genome Project) and the time invested by users in creating custom stations, has thus far weathered challenges from Spotify, Apple, and Google, among others.

Shares largely moved sideways yesterday after Apple announced it's acquiring Beats and its subscription streaming service.