CLICK ANALYSISTim Westergren, FounderPandora differs from other Internet radio sites by relying on a methodknown as the Music Genome Project. Unlike most music sites that focus ongenre, Pandora has no concept of genre, user connections or ratings.(Layton, J., 2011) A user can create a personalized radio station and basedon songs selected, the Pandora technology plays other songs that havesimilar musical traits.Westergren spent ten years playing Keyboards as part of band and traveledmost of the time.Pandora fulfills a users desire and enhances the experience of listening tomusic.Pandora has more than 2.5 million subscribers that are between 18 and 49years of age, 70% of listeners are Caucasian, 51% are males as comparedto 49% females.
SWOT ANALYSISStrengths WeaknessesProprietary Technology User Can’t Control Play ListService Free of Charge Radio Stream Has CommercialsUser Friendly Technology is NewLarge Music Database Doesn’t Have All Licensing AgreementsOpportunities ThreatsIntroduce Subscription Fee Larger Radio Stations Can CompeteExpand To Offer Live Performances New StationsInclude Unsigned Bands Music Keeping Audience StimulatedHave Radio Station For Bands
COMPETITOR ANALYSISiTunes Compatibility with iPod/iPhone/iPad (All #1 devices) Industry LeaderRhapsody streaming on-demand music subscription service to offer unlimited access to a large library of digital music for a flat monthly fee helps organize music collections, and sync them in MP3Sirius Music channels are presented without commercials all channels are free from FCC content regulation, thus songs are played unedited for language, and talk programs may feature explicit content
TOP 3 PROBLEMS Free Music Focused Playlist Accessibility
TOP 3 SOLUTIONSPandora offers various packaged with which you can listen to their playlists. One of which is Free and gives listeners the ability to tune in to their favorite songs free of charge.Pandora offers listeners the ability to choose their style of music and to make channels based on the style and mood you are in that day.Pandora can be accessed at your office, at home, on your phone. Anywhere you can access the internet you have Pandora.
Business Model CanvasKP Key Partners KA Key Activities VP Value CR Customer CS Customer Offers free internet Proposition Relationships SegmentsAdvertisers and radio, based on genre after you Customers Pandora Radio acquires its Pandora Radio’s target audience isPremium input a band, song, choose to use customers mostly by huge. They reachsubscription or genre Pandora Radio word of mouth. out to listeners thatholders Because of its huge old enough to use because of its name, people know the internet, all the intelligence, what its all about. way to people who ease of use, Their customer may not know how KR Key Resources service is exquisite to use because and that’s its which allows the they’re older. They Joe Kennedy- CEO/President free. The company to hold try to reach Tim Westergren- premium users onto its customer everyone, because CSO/Founder base anyone can benefit Tom Conrad-CTO/Exec. gain access to from a radio that VP of Product no ad’s and chooses your music great choices CH Channels Steve Cakebread-CFO by John Trimble-CRO Delida Costin-Gen. Pandora is strictly recommendations. Counsel for a low price. through the Jessica Steel-Exec. VP of internet, however Bussiness/Corporate newer radios that Development have an internet Simon Fleming-CMO connection, can use Peter Ekman-VP of HR The board also consists Pandora as well. of genius venture capitalists, investment bankers, and businessmen.C$ Cost Structure R$ Revenue StreamsPandora’s main cost are royalties that must be paid to Pandora charges for a premium account.$36 per yearthe musicians, however a new agreement last month for no ad’s, high quality audio, desktop app, five-hourwas met to only cap listeners after 320 free hours per time out period. Also advertising on Pandora’s radio ismonth. Servers and personnel are a large cost forPandora as well. a their main revenue stream.
INDUSTRY IMPACTPandora Radio revolutionized internet radio by creating free content, that is based off your recommendation.Pandora changed royalty agreements to give users the access to cheaper or free listening content
ALTERNATIVE BUSINESS MODELS Pandora could allow users create customized stations. Allow more skips Allow for international use Get licensing agreements Develop mobile technology usability
REFERENCESQuantcast -http://www.quantcast.com/pandora.comBusiness Innovation Factory - http://businessinnovationfactory.com/iss/innovators/tim-westergrenBillboard.biz - http://www.billboard.biz/bbbiz/industry/digital-and- mobile/pandora-s-tim-westergren-talks-with-billboard-1005237292.storyMcBride, S., March 11, 2010. The Wall Street Journal: Pandora’s Radio Head - http://magazine.wsj.com/hunter/rebel-yell/radio-head/Layton, J., 2011, How Stuff Works: How Pandora Radio Works - http://computer.howstuffworks.com/internet/basics/pandora.htmpandora.com/corporate/managementpandora.com/corporate/board seekingalpha.com/article/262294-pandora-cranks-up-the-growth-machine- but-is-it-sustainablecomputer.howstuffworks.com/internet/basics/pandora.htm blog.eloqua.com/10-fast-facts-pandora/