Pandora is a music streaming service founded in 2000 that pioneered personalized radio stations. However, Pandora has lost money and subscribers in recent years due to competition from services like Apple Music and Spotify that offer on-demand listening. In 2014, Pandora launched a premium service with on-demand features to compete, but it is still behind others. Pandora's goal is to increase premium subscribers by 75% through social media, concerts, and celebrity partnerships to appeal to millennials and be considered a top streaming service.
2. Background Info
• Pandora is a non-interactive
music streaming service
• Founded in 2000, by Will Glaser
and John Kraft
• Officially went public in 2011,
before Apple Music and Spotify
competitors).
• Purpose: to create personalized
radio stations for each user
3. How Pandora Became Successful
• Pandora started with the mission “to play only
music you’ll love”
• Created the Music Genome Project
• This system allowed Pandora to study and analyze
the type of music their listeners enjoyed, in order to
fine tune and personalize stations for their users.
• With the help from the “thumbs up” or “thumbs
down” feature, Pandora became the first streaming
service to individualize the music experience
4. • Today, Pandora is increasingly loosing money and
subscribers to its competition — Apple Music,
Spotify, Google Play & Amazon
Why are people no longer interested?
• Non-interactive — Pandora offers set playlists/radio
stations that get fine tuned based on feedback
• Pandora does not allow its listeners to select
songs of their choice on-demand
• Lack diverse content like other streaming services
• music/video segments, podcasts, mood based
playlists
How Pandora Fell Behind
5. The Situation
• As of 2014, Pandora Internet Radio
has been working to launch a
premium service that has on-
demand listening features
• Pandora Premium is set to be $4.99
a month
• Have maintained on average 80
million subscribers per month
(2016).
The Problem
• Pandora is almost 5 years behind
premium music streaming, many are
already subscribed to other services
(Apple Music, Spotify, etc).
6. The Goal
To gain more listeners and
subscribers for Pandora’s Premium
Service
Important to note: Pandora Premium = 4.3 million,
Spotify = 40 million, Apple Music = 20 million
8. Key Message
Pandora Sounds Like You!
• Pandora premium caters to
the customers on-demand
music needs
• Enhance listening experience
by playing songs you like
based on who you listen to
• Promote music discovery
9. Target Market
• Research has proved that the
Millennials love streaming
services!
• According to released report
(Music Biz Association),
millennials are much more likely
to upgrade to the paid tier of a
streaming platform than the
general population.
• Therefore, in order for Pandora
Premium to be successful they
have to make sure their target
audiences are Millennials.
10. Strategy
• Regain the attention of
millennials interested in music
streaming services
• Move up in ranking/ be
considered in the Top 3 Music
Streaming Services (based on
subscriptions)
11. Tactics
• To gain attention from
Millennials
• Offer Original/Exclusive
Content — video series,
podcasts, studio sessions
that bring music experiences
to subscribers
• Live Concert Series —
summer music festivals,
featuring top pandora artists
14. Tactics
• Be Considered in Top 3 streaming
services based on subscriptions
• Expand services globally
• Currently only available in the
US, New Zealand and Australia
• Competitors Availability:
• Apple Music — 113 countries
across UK, US, Australia, &
Asia
• Spotify — 70 countries across
US, Europe, Asia & Latin
America & Caribbean