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Pandora is an ad supported internet radio available only in the usIt allows listeners to create streaming music playlists based on songs or artist they like.I tunes dominates the music buying sector, but it also limits the music choices because you can only listen to song you have bought.BUT: with smartphones and tablets being constantly connected to the internet you can listen to any kind of songs, whereas on an I tunes playlist you are limited to listen tomusic you own but the advantage is that you can listen as manz times as you want whereas if you stream a song you are limited in the number of times you can listen to itpNDORRA HAS 50 MIO active users, but it has experienced difficulty in making rofits until its recent integration on the I phone as an application Pandora shares drop 18% on rumor of rival apple serviceBenefits for apples I tunes: Compared to pandre which is only available in the us apple radio is more likely to become wwIt could be seen as an advertising platform first of all for apple and record labels to promote songsApple could get cheaper liscencing conditions due to stronger linkages with record industrySince leakage of such rumors, Pandora’s stock prices have dropped by as much as 21%The obvious advantage: iTunes – Apple already has a database of users’ personal tastes in music, so it wouldn’t need to ask users what they like a natural evolution of Apple’s stakes in musicApple is potentially better positioned to sell more music for record labels than pandora because iTunes already does thatApple can potentially make it worldwide
http://mashable.com/2012/09/04/streaming-music-revenue-charts/Increase in licensing costs
Acquisition of Instagram now a done deal for $1bnFB stock price has lost half its value since its IPO – deal is now worth about $715mnAccording to FB, the photosharing app will continue to develop independentlyhttp://www.adweek.com/news/technology/sponsored-filters-how-facebook-could-monetize-instagram-139492Instagram one of the fastest growing mobile apps in history, 80 million users in less than 2 yearsFB is also already the largest photo-sharing websiteBenefits:By buying instagram, fb takes out its future competitor and grows its mobile presenceData from instagram users will feed into fb machine, giving fb more tools for precise targetingFb improves mobile strategy
Photosharing is an important feature of FB, and Instagram is a natural fitWhy: FB was most likely trying to kill a competitor with 80 million users – half of users before acquisition were under 35 years – offering a targeted demographicWhat will happen: integration of FB login to InstagramInstagram more mobile than fb – improve mobile strategyEasier sharing of Instagram photos on FB, such as bulk sharingCapturing the Instagram market for FBEventual use of advertisements? Database of images?Study by Simple Measured found that 40% of top brands are on Instagram such as MTV, Starbucks, and Burberry, and they are posting at least once a week60% of these posts have a filter applied, most popularly lo-fiSimply Measured took top brands from Interbrand Top 100 Global Brands listhttp://mashable.com/2012/08/08/40-of-top-brands-instagram/http://contently.com/blog/2012/08/27/filter-marketing-how-the-top-brands-use-instagram/
ConclusionApple: leader in music industry – expanding business to make more profits and drive/reinforce current business in music salesFacebook: leader in social media (includes photosharing) – opportunity to kill competitor and mobile and photosharing strategies