Pandora prepares for a fight as advertisers flock to iTunes Radio

Apple began its foray into Internet radio Wednesday with the support of several brands, millions in dollars of ad revenue and a belief that it has what it takes to unseat Pandora as the dominant radio-streaming platform. ITunes Radio offers an ad-free version that costs $25 a year and lets subscribers skip an unlimited number of songs. Pandora is responding with an upgrade to its logo and a new application for the iPad, and -- according to a filing with the Securities and Exchange Commission -- is considering taking on terrestrial radio for a piece of the local audio advertising market.

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