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Pandora (P -2.8%) sells off after Spotify launches a free, ad-based, Internet radio service for...

Pandora (P -2.8%) sells off after Spotify launches a free, ad-based, Internet radio service for U.S. users that strongly resembles Pandora's. But while Pandora's service relies on a music-analysis algorithm, Spotify's uses a "social graph" of user activity. Pandora's market share has thus far held up well in the face of new competition. One reason: the time spent by Pandora users to create personalized stations creates a switching cost that discourages many from leaving. (previous) (Songza)
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