Samsung Enters Mobile Content Space, Is Pandora Now on the Menu?

According to a

, released by Reuters, Samsung is looking to enter the software business, either through internal innovation or through acquisition. Already one of the most recognized names in various forms of hardware ranging from TVs to smartphones, Samsung is looking to expand its offerings beyond hardware, and enter the business of providing mobile content. The move will bring Samsung into direct competition with titans of the industry ranging from Google

to Amazon

and Pandora

, and represents a significant shift in overall strategy for the high tech hardware maker. In a Reuters interview, Samsung senior vice president Kang Tae-Jin said "The message we're getting from the top is to raise software capability, and buy rather than build, if needed." He went on to say that "Mobile business is what Samsung is doing really well, and as a result we have deep pockets. We are very serious about content business.” When asked how the move into software would fit in with the company's overall strategy, Kang said "We have an internal target to break even in software. But, in general, selling content won't make much of a contribution to the bottom line. We see other new business opportunities associated with content." With Apple currently dominating the digital music industry, it isn't surprising that Samsung wants to get a piece of the action, especially with the war currently raging between the two brands. On top of the inherent rivalry between the two companies, there is also the recent rumor that Apple would be launching a Pandora-like service. Not only has that rumor hurt Pandora share prices, it has some analysts speculating that other firms may be looking to enter into streaming music. The announcement that Samsung is in the market for mobile content providers has brought on a slew of speculation from analysts. Some are saying that the easiest entry would be to purchase a company like Pandora or privately held Spotify. Whether or not these companies would be willingly acquired is a whole different matter however, but with the cash reserves built up from its mobile business, its not out of the question. In may, Samsung company acquired online music service mSpot, a suitable prelude to the mobile content initiative, and has already set lofty goals for the service. According to Kang; "We want to grow the Music Hub to rank in the world's top four services within three years in both revenue and subscriber numbers. And to shorten the time, we're ready to do more acquisitions, if needed." For the service to be successful however, Samsung will need to convince consumers that not only are they capable of creating great hardware products, but software as well. While the tried and true strategy of pre-loading the service onto its hardware products will no doubt be employed, the company will need more to do more than strong arm use of the software for it to achieve market penetration. Shares of Pandora traded up 5.48 percent Thursday, rising to $10.98.