(Reuters) - Shares of online streaming music service Pandora Media closed down 12 percent on a report that Apple Inc was in serious talks with major music labels to start an advertising-supported internet radio service by early next year.
A deal could be reached by mid-November with Apple starting a service within the first three months of 2013, Bloomberg said, quoting people with knowledge of the negotiations.
News last month that Apple could be considering a potential launch of an online streaming music service cast a shadow over Pandora's business prospects. The company's shares have dropped more than 40 percent since then.
Pandora faces fierce competition from the likes of Sirius XM Radio, Clear Channel and Spotify as they battle for listeners in the burgeoning online streaming radio market, but Apple -- with its huge purse and ties to music labels -- may be Pandora's most serious challenger yet.
Executives from Vivendi SA's Universal Music Group, Warner Music Group Corp, and Sony Corp's music division visited Apple's headquarters recently to learn more about its radio plans, Bloomberg said.
Apple wants listeners to be able to buy tracks as music streams or revisit what they've heard in auto-generated playlists, it reported.
"We don't comment on our stock price or rumored competitive moves," Eric Brown, Pandora's vice-president of communications wrote in an email.
"We remain focused on our listeners and delivering the best Internet radio experience for them," he added.
Apple was not immediately available for comment.
Shares of Pandora closed at $8.20 on the New York Stock Exchange on Thursday. They were down 13 percent at $8.08 in trading after the bell.
(Reporting by Sayantani Ghosh in Bangalore; Editing by Saumyadeb Chakrabarty)
Smuggle Truck: Operation Immigrant
Boston-based developer Owlchemy Labs irked immigrant advocate groups with this iPhone game that allows users to drive a <a href="http://www.huffingtonpost.com/2011/04/28/smuggle-truck-operation-immigration-rejected-by-apple_n_854899.html" target="_hplink">truck full of immigrants</a> through the desert. According to the AP, "[Developer Alex] Schwartz said he wanted to bring attention to immigration issues." But Apple banned the app from the App Store.
U.S. Senators Chuck Schumer, Frank Lautenberg, Tom Udall and Harry Reid pressured Apple, Google and RIM earlier this spring to remove smartphone apps that notify users of nearby police <a href="http://www.huffingtonpost.com/2011/03/23/senators-ask-apple-to-ban-dui-checkpoint-alert-apps_n_839300.html" target="_hplink">DUI checkpoints</a>. Apple and RIM have since <a href="http://www.huffingtonpost.com/2011/06/09/apple-dui-checkpoint-apps-ban_n_874532.html" target="_hplink">complied</a> with the Seantors' demands and cracked on so-called "DUI checkpoint" apps, but Google has yet to take action.
Despite initially passing Apple's standards, the allegedly anti-gay messages promoted by the app "<a href="http://www.huffingtonpost.com/2011/03/23/apple-exodus-international-app_n_839448.html" target="_hplink">Exodus International</a>" outraged thousands of customers. The Exodus International ministry, from which the app takes its name, <a href="http://blog.exodusinternational.org/about/http://blog.exodusinternational.org/about/" target="_hplink">promotes</a> "freedom from homosexuality through the power of Jesus Christ." After more than 150,000 signatures were gathered for an online petition, Apple removed the app from the App Store entirely.
Hugh Hefner claimed in January that "Playboy" would soon come <a href="http://www.huffingtonpost.com/2011/01/21/playboy-ipad-app-blocked-_n_812489.html" target="_hplink">uncensored on the iPad</a>. Apple, however, remains firm on its nudity-free policy within the App Store and forced "Playboy" to resort to a low resolution web app instead.
The <a href="http://techcrunch.com/2010/12/20/apple-removes-wikileaks-app-from-app-store/" target="_hplink">unofficial WikiLeaks application</a> lasted only three days in the App Store before being banned by Apple.
'The Importance Of Being Earnest'
Apparently Apple's censors worried that Tom Bouden's graphic novel version of Oscar Wilde's <em><a href="http://www.huffingtonpost.com/2010/06/14/apple-censors-gay-kiss-in_n_611553.html" target="_hplink">The Importance of Being Earnest</a></em>, which portrays illustrations of nude or partially nude men embracing, would be too objectionable for too many users. Apple approved the app, but only with black boxes covering controversial frames. However, the App Store later reversed its decision and passed the app without the censor bars.
Big Brother Camera Security
In 2010, Apple approved the <a href="http://www.huffingtonpost.com/2011/06/15/apple-bans-big-brother-camera-security-iphone-passcodes_n_877481.html" target="_hplink">Big Brother Camera Security app</a>, which lets users remotely photograph someone who is improperly trying to access their stolen or lost iPhone. In June 2010, however, the app was removed from the App Store following accusations that the developer was "surreptitiously harvesting user passwords."
Apple removed the app called "<a href="http://www.huffingtonpost.com/2011/06/23/apple-removes-anti-israel-thirdintifada-app_n_882857.html" target="_hplink">ThirdIntifada</a>" from the App Store, following complaints made by Israel's information minister, Yuli Edelstein and Jewish human rights group Simon Wiesenthal Center. The app was said to promote violence against Israel, according to claims.
Apple initially approved so-called "anti-gay" app <a href="http://www.huffingtonpost.com/2010/11/24/apple-manhattan-declaration-app_n_788075.html" target="_hplink">Manhattan Declaration</a>, but the App Store later removed the program following a wave of complaints--and a petition--from outraged customers. The app asked users to sign a "declaration," which according to the app "speaks in defense of the sanctity of life, traditional marriage, and religious liberty."