Pandora stock falls after Apple announces 11 Million iTunes Radio users

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Apple announced on Monday morning that over 11 million customers have used iTunes Radio in the few days since launch. Apple’s new iTunes Radio launched this week alongside iOS 7, which Apple confirmed has been downloaded and installed on 200 million devices. This announcement sent Pandora’s stock tumbling 10% down to $24.26 at the close of the business day, according to Bloomberg.

Pandora launched in 2000 and has grown to 72 million users. It offers a streaming radio service that allows users to listen to a radio station based on criteria like an artist or a song. Each track can be voted up and voted down, which helps determine which songs will be played in the future. The company offers an ad-supported free service as well as Pandora One, a paid version with bonus features and no ads.

Apple’s new iTunes Radio has been compared to Pandora as it follows a similar streaming radio model with user feedback to improve the track choices. Users can listen to stations that are built around artists, songs or genres and then respond to each song with a “Play More Like This” or a “Never Play This Song.” Customers can listen to the service with the occasional ads, while those with the $25 yearly iTunes match service have access to an ad-free version.

iTunes Radio is available on all iOS devices with iOS 7 and in iTunes 11 for OS X. Are you are one of the 11 million who have listened to iTunes Radio? Is it good enough that you would you switch from Pandora?

[Via Bloomberg]