I currently have my game correctly handling disabling its own BGM when music is playing in the built-in iPod app, but it does not detect when an app such as Pandora is playi
AudioSessionGetProperty (as mentioned in jake_hetfield's answer) is deprecated as of iOS 7.
AudioSessionGetProperty
Instead, try this one-liner that uses isOtherAudioPlaying:
BOOL isOtherAudioPlaying = [[AVAudioSession sharedInstance] isOtherAudioPlaying];
Works on iOS 6+.