Apple Inc. (AAPL) Has a Great Future in Music; Should We Be Focusing On That?

Pandora Media Inc (NYSE:P), the service from which Apple may model its radio-streaming service, is fully available only in three countries: the United States, Australia and New Zealand. The company is also the custodian of the Music Genome Project, which tries to map music genres and styles across the world.

Though it’s immensely popular in the above mentioned regions, it’s not internationally available. It also reported a $35 million net loss in the most recent fiscal year, which reduced investor confidence in the company.

Apple will certainly be able to offer a better service than Pandora internationally as its iTunes music store is already available in 119 countries. This makes it easier for Apple to acquire subscription rights from recording companies, which is what stops Pandora from offering its services internationally.

The bottom line

Apple may have reached a point of saturation when it comes to its devices. Its iPhones and iPads may not be selling as exceptionally as they did before. However, the company has a great future in its music business. If Apple combines its iTunes music store with a premium radio-streaming service, it will stand to make more money than it does from iTunes alone.

Nauman Aly has no position in any stocks mentioned. The Motley Fool recommends Apple and Google. The Motley Fool owns shares of Apple and Google.

The article Apple’s Future Is in Tune originally appeared on Fool.com.

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