Spotify, iHeartRadio Move In On Pandora's Recommendation Territory

Ryan Whitwam

Pandora’s stock has had a lot of ups and downs since the IPO last month, but this has been an especially rough day. All because two announcements are stealing some of Pandora’s recommendation engine thunder . User will soon find that both iHeartRadio and Spotify are a lot more like Pandora than they used to be.

The first nail in Pandora’s coffin is a new partnership between Clear Channel and Echo Nest that will allow iHeartRadio users to build customized radio stations based on a single artist. Eerily like Pandora, right? America’s newest music obsession, Spotify is also in on the Pandora killing game with a third-party web app called Echofi. With this solution, you visit a webpage that shoots recommended Spotify URIs into your client.

Pandora did this music recommendation thing first, but it doesn’t mean they will always own the market. As an investor, you have to be worried when a company's business model can be duplicated so easily. Do you think Pandora is in trouble?

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