The problem with iTunes Radio service is the name. “Radio” invokes images of old transistor radios with round dials and extension antennas, everything old about music. Those who are targets for streaming music have never had to use a round dial to tune a radio or point a wire antenna around trying to find the sweet spot to listen to their favorite station.
The name “Radio” is bad on two fronts; on one end, it turns off the older generation who thinks of radio as a dying technology and it misses the mark entirely for a generation who receives all of their music from the intarwebs.
From the NYTimes:
Until now, Apple’s moves toward streaming have been tentative. Its iTunes Radio service, meant to compete against Pandora, has found minimal traction in the market.
The growth of Apple’s iTunes Store is being hurt by companies like Spotify and Pandora, which allow people to stream music freely with ads or with a paid subscription.
“Apple was at the front of that curve, and if that’s the reason for the acquisition, it would lend credence to the view that maybe they’re not ahead of the curve anymore,” said Maynard Um, a financial analyst at Wells Fargo.