Google Inc (GOOG), Apple Inc. (AAPL): Can Pandora Media Inc (P) Keep Up with these New Competitors?

Apple’s radio is unsurprisingly called iRadio, and will offer free internet radio with commercials. Apple Inc. (NASDAQ:AAPL)recently had a win by signing a deal to play music from holdout music label Sony Music. This followed deals with Warner Brothers and Universal. iRadio is primed for launch and will pose an immediate threat to Pandora. One of the main competitive advantages that iRadio has will be its link to iTunes. Listeners will be able to easily purchase songs they like on the radio to have in their library. In addition, Apple iPhones could come with the program preloaded. This would make it easier for Apple Inc. (NASDAQ:AAPL) users to switch from Pandora to iRadio. This new radio service is due to launch any day now.

Google Inc (NASDAQ:GOOG) launched Google Play Music All Access in May. This internet radio is a subscription based service that allows customers to listen to radio, playlists, and stream their favorite songs commercial free for $7.99 a month. Like iRadio, Play Music will allow users to purchase songs through Google Music for offline use. This service is currently available for Android users, but will soon be available on Apple products sometime this summer.

With music stores, hardware and cash to invest, both Google Inc (NASDAQ:GOOG) and Apple have significant advantages over Pandora Media Inc (NYSE:P). If Pandora hopes to compete with the tech giants, they need to focus on providing the best personalized music service on the web. The company’s mission is to help every talented artist reach an audience that will appreciate their music regardless of their sound or genre. Discovering great music for consumers is where Pandora could outshine Apple Inc. (NASDAQ:AAPL) and Google Inc (NASDAQ:GOOG).

Conclusion

Pandora Media Inc (NYSE:P) is a fast-growing company that has to compete with two of the world’s largest tech powerhouses. The company has had impressive revenue growth of 54% in 2013 and plans for further expansion down the road. Even though I like Pandora, competing against Google and Apple is bad for its health. Wait to see how the launch of iRadio and Google Play Music All Access affects Pandora Media Inc (NYSE:P)’s growth in the coming months. If the company is still growing at the same, impressive rate then I’d call it a buy. But for now, hold off on this investment.

Ben Popkin 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 Can Pandora Keep Up with these New Competitors? originally appeared on Fool.com.

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