Pandora is great. It provides free music. You select what type of music you like and Pandora will automatically play that type of music. If you're in the mood for relaxing music to study to, you can set Pandora to play ambient music. If you're in the mood for catchy tunes, you can set Pandora to play the latest popular music. The versatility, simplicity, and low cost of Pandora is what makes it appealing.
Recently, however, there has been talk that iTunes Radio, which is similar to Pandora, will pose a threat of Pandora's business. However, it turns out that iTunes Radio has not had much impact at all on Pandora.
Why is this? It's difficult to know what is happening at a macro level, but in terms of why I haven't switched to iTunes Radio, the main reason is that I would need to buy an Apple device, i.e. an iPhone, iPad, Apple TV, etc. If iTunes Radio were available not only on Apple devices but also on Android and on web browsers (like Pandora is) I think it would be much more popular.
When I told this to a friend, she asked me why I didn't buy an iPhone, given that the amount I paid for the Sony Xperia Z was about the same price as an iPhone 5. The answer is that if I got the iPhone 5 instead I would have to compromise. I wouldn't get expandable storage, I would get a smaller battery, lower resolution screen, a slower processor, less RAM, and a phone that is not waterproof.
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