Apple Challenging Pandora - Death of Pandora?

Read this article today about how Apple would like to challenge Pandora in the radio space:

http://adage.com/article/digital/apple-streaming-radio-challenge-pandora-year/237991/?utm_source=digital_email&utm_medium=newsletter&utm_campaign=adage

Apple's platform would not play via a browser like Pandora, but would play on apple devices (iPad, iPhone, iPod Touch).  Apple is exploring this option not only as a logical next steps to reach more consumers for music, but also because they (Apple and the record labels) are seeing a slow-down among music downloads. 

If Apple does move forward with this, I think this will be the end of Pandora.  Given Apple's record label relationships, it will be able to negotiate a far more lucrative deal with the labels than Pandora can as Pandora has many restrictions (commercials when users skip songs, limitations on how many times a song can be played, a consumer paid model if you listen for more than x amount of time).  Apple already has a large network of users of their devices that they can easily move towards using the radio platform by installing it directly onto the devices, so they wouldn't have to wait for a brand awareness or Word of Mouth campaign to kick in to find the website like Pandora did. 

Pandora could try to cater to the "Indie" audience by picking up smaller, less restrictive labels and musicians that will not demand a rev share and would draw a specific target audience base that is passionate about music.  They could also try to enhance their website and do more partnership with other vendors to get more expansive on the web before Apple really grows it's product.  Otherwise, I'm not certain how Pandora will survive in the long run.