“Growing organically has been a surprisingly challenging task for Apple Music, considering the Cupertino company has easy access to the iPhone user base and should theoretically have little problem cross-selling its music service to existing customers,” Martins writes. “But as it turns out, even Spotify has been doing a better job at growing its subscriber base.”
“By adding Pandora’s current 81 million monthly active listeners to its portfolio, Apple would become the undisputed leader in the space. In addition, I don’t consider the current market value of each Pandora active listener ($33, calculated as the company’s market cap divided by total user base) to be too aggressive of a figure,” Martins writes. “Keep in mind that Pandora estimates a Premium customer to have up to $91 in lifetime value and a non-paying user to be worth no less than $21. The acquisition, therefore, might make sense if Apple is able to monetize on the sizable user base effectively.,” Martins writes. “”
Read more in the full article here.
MacDailyNews Take: No.
Apple will buy Pandora for the same reason they bought Palm.
Why Apple should buy Sirius XM and Pandora – December 14, 2016
Largest shareholder urges beleaguered Pandora to sell the company – May 17, 2016
Pandora said to have held talks about selling the company – February 11, 2016
Apple Music takes a huge bite out of Pandora – October 23, 2015