Expectations For Apple's iRadio Hit Pandora Shares

Apple's Worldwide Developers Conference AAPL 00:44% 's CEO Tim Cook takes the stage, begins on Monday after a wave of speculation that the tech giant has.

In particular, Apple a music streaming service called iRadio, -0.66% P Pandora Media Spotify and market competition in this space have monopolized radio is the Google GOOG 0.86%, to ads that are expected to select it.

It is Pandora, to compete with the market leader when it comes to the unique brand value and innovation with a focus on Apple, the company faces an uphill battle. Music streaming 33% increase in the same period last year - an incredible 70.8 million active users on Pandora. Spotify is an impressive 24 million users, but is far behind Pandora. Apple on Monday pool, but the jump in the share cocoons Pandora set. With

For Apple, the crucial question is how you plan to monetize this new service. Details are expected to arrive at the conference on Monday, but the music-streaming service business model is a lot of innovation: the ads for free or pay a monthly update and without advertising.

Pandora and Spotify can base their pricing models from Apple, the company announced in its current form because of the lack of advertising, firm support, do not expect to be. The main issue

"If you are interested in a strong expertise of Apple or advertising in the past, to see what is not there," says S & P Capital IQ analyst Scott Kessler.

Instead, Kessler Apple is much less dependent on advertising, the music subscription space that the user experience related to how to improve the prognosis. He adds: "The company is ultimately to improve the user interface Apple send their customer base and upsell customers to a paid subscription model offers the possibility to allow."

Apple did not rely on advertising, the ads Kessler space to compete with other brands is much less intrusive in that job.

On the other hand we have that Apple has to offer over $ 9.99 monthly fee for access to music, Google may be inclined to the radio model. This model runs the risk of cannibalizing sales of Apple's iTunes.

"I think all of you - you can hurt if you sell food to iTunes subscription service that gives you total control over listening," says BGCP -0.17% BGC Partners analyst Colin Gillis. All in, "This is an excellent model for the character" "and Apple began writing and became a leader in this space. Now you can eat anything" can.

Apple shares Worldwide Developers Conference on Monday for the start of 1%. Shares of Pandora Media fell 2.8%