Google, Apple Are Doing Something New That Could Be A Positive For Pandora

Noted Internet analyst, Bob Peck, of SunTrust Robinson Humphrey, commented on Alphabet Inc GOOGL's Google and Apple Inc. AAPL cutting rates on subscription apps and the possible implications for Pandora Media Inc P.

Peck noted both Apple and Google will soon reduce their revenue share split structure from about 30 percent to 15 percent.

The SunTrust analyst sees the news as positive for Pandora.

"If commissions were to drop to somewhere between 15% (conservative) and 10% (most aggressive) of Pandora One revenue starting Q3, all else constant, we estimate that this would add $6m-$11m to P’s 2016 EBITDA," Peck said. He sees the addition of between $11 million and $22 million to Pandora's FY17 EBITDA.

Pandora shares last traded at $12.03, up about 2 percent on the heels of an earlier upgrade from Axiom's Victor Anthony.