Pandora Revenue and Business Model

Discussion in 'Growing and Managing a Business' started by helix2301, May 29, 2012.

  1. helix2301

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    Apr 20, 2012
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    Pandora a decade-old company which relies mainly on advertising and subscription revenue and competes with traditional radio, satellite radio and upstarts like Spotify, Rhapsody, iHeart Radio, and TuneIn just to name a few. Pandora's subscription based service called Pandora One is $36 a year which allows for more skips and ad free listening. Pandora has never disclosed how many Pandora One subscribers they have from research I have done on the internet the estimated number is 800,000.
    The company has over 150 million registered users with about 52 million active listeners that have given Pandora almost a 6 percent share of the U.S. radio listening market. The company has made huge strides on the mobile market clinching a spot in the top 25 most download apps. But the company has admitted that they only make about $20 dollars for a 1000 hours of listening on the mobile app which is down in comparison to the $80 it makes on the PC for the same amount of listening hours. The company lifted its 40 hour a month restriction to help gain more advertising revenue.
    Pandora has taken some negative press after Timothy Westergren co-founder of Pandora said the company had 80,000 artists, 800,000 tracks in its library. Spotify had made mention that they have over 15,000,000 tracks in there library which made Pandora look inferior but over all Pandora's loyal fan base stood by them.
    Pandora reported that first-quarter revenue rose 58 percent to $80.8 million blasting past analysts average forecast of $74.3 million as the company scooped up more advertisers. Pandora a mostly free service that recommends music based on a listener's playlists, also raised its full-year revenue outlook.

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