Pandora

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Pandora

  1. 1. Company Review<br />PREETI J. PILLAI<br />
  2. 2. PRODUCTS<br /><ul><li> Internet Radio Service
  3. 3. Others</li></ul>Pandora Mobile for BlackBerry<br /> Pandora Applications for multiple platforms<br /><ul><li>Facebook
  4. 4. Sidebar Gadget for Windows Vista, 7
  5. 5. Mobile Apps for iPhone, iPad, iPod, Android, Blackberry & Windows Mobile
  6. 6. Livio Radio sells a Radio just for Pandora! </li></li></ul><li>HISTORY<br /><ul><li>Founders 
  7. 7. Tim Westergren(Recording Technologist)
  8. 8. Will Glaser (Computer Scientist & Mathematician)
  9. 9. Jon Kraft(Entrepreneur in S/W & new Media)</li></ul>These guys brainstormed Pandora Media in the <br />Fall of 1999 in an L.A. bar..<br /><ul><li>Their First Mega project </li></ul>their patented Music Genome Project <br />“a recommendation algorithm to organize music”<br />
  10. 10. TARGETMARKET<br /><ul><li>Music Lovers everywhere who wish to listen to their favorite singers/genres only
  11. 11. Limited within the US due to compulsory license issues for Internet Radio
  12. 12. Currently more than 80 million listeners(2011) compared to 20 million in 2009!
  13. 13. Adds a new registered user every second on average
  14. 14. Free as well as paid services</li></li></ul><li>SECRET SAUCE<br /><ul><li>Their competitive recommendation system
  15. 15. Personalized Internet Radio
  16. 16. Unlike Apple’s iTunes, Pandora took advantage of a compulsory ‘US license for Internet Radio’ that allowed one to pay for streaming recorded music
  17. 17. Other competitors at that time negotiated with individual labels to stream music and were unsuccessful in making money
  18. 18. Pandora paid for ‘performance royalties’ rather than broadcast royalties</li></li></ul><li>WHY PANDORA IS <br />NOT RADIO<br /><ul><li>Unlimited Channels
  19. 19. Not Live, hence 24/7 availability
  20. 20. Uncluttered
  21. 21. All kinds of Music
  22. 22. Fresh
  23. 23. WiFi /3G /4G
  24. 24. All registered Users</li></li></ul><li>COMPETITION<br />Yahoo! Music Radio<br />Slacker Radio<br />Sirius XM Radio<br />Last.fm<br />And the entire Internet Radio!!<br />
  25. 25. FINANCES<br /><ul><li>Though the company started making a profit post-2000, it has till date, accumulated a deficit of $83.9million !!
  26. 26. In 2010,</li></ul> revenues of $90 million & a net loss of $328,000<br /><ul><li>Biggest Investors. </li></ul>Crosslink Capital (23%), Walden Venture Capital (19%), GreylockPartners (14%)<br /><ul><li>Founder Tim Westergren owns less than 3% of the company’s revenues</li></li></ul><li>THE FUTURE<br /><ul><li> In Feb 2011, Pandora anounced that they are going public offering over a $100 million in Common stock
  27. 27. Recent partnerships with automakers BMW, Ford and Toyota to integrate Pandora into their </li></ul>dashboard <br /><ul><li> However, royalties are its biggest expense!! 
  28. 28. And it’s only least safe till 2015 ! Because…</li></li></ul><li>THE FUTURE<br /><ul><li> The Copyright Royalty Board (CRB) has released a revised fee schedule in 2007 for internet radio and in 2015 Pandora has to re- negotiate a new royalty agreement with the music industry
  29. 29. May switch over to Pay-only Music services 
  30. 30. Ever-increasing massive iPhone User base 
  31. 31. The present PANDORA may very well prove to be Radio’s Future…</li>

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