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Company Review
  PREETI J. PILLAI
 Internet Radio Service



                                    Others

            1. Pandora Mobile for BlackBerry
 2. Pandora Applications for multiple platforms
                                  Facebook
       Sidebar Gadget for Windows Vista, 7
 Mobile Apps for iPhone, iPad, iPod, Android,
               Blackberry & Windows Mobile
    Livio Radio sells a Radio just for Pandora!
 Founders 
         • Tim Westergren (Recording Technologist)
         • Will Glaser (Computer Scientist & Mathematician)
         • Jon Kraft (Entrepreneur in S/W & new Media)

           These guys brainstor med Pandora Media in the
                  Fall of 1999 in an L.A. bar..

 Their First Mega project 
        their patented
         “a recommendation algorithm to organize music”
 Music Lovers everywhere who wish to listen to their favorite
   singers/genres only

 Limited within the US due to compulsory license issues for
   Internet Radio

 Currently more than 80 million listeners(2011) compared to 20
   million in 2009!

Adds a new registered user every second on average

 Free as well as paid services
 Their competitive recommendation system
 Personalized Internet Radio
 Unlike Apple’s iTunes, Pandora took advantage of a
   compulsory ‘US license for       Internet Radio’ that
   allowed one to pay for streaming recorded music
 Other competitors at that time negotiated          with
   individual labels to stream music and were unsuccessful
   in making money
 Pandora paid for „performance royalties‟ rather than
   broadcast royalties
Unlimited Channels
Not Live, hence 24/7 availability
Uncluttered
All kinds of Music
Fresh
WiFi /3G /4G
All registered Users
 Though the company started making a profit post-2000, it has
   till date, accumulated a deficit of $83.9million !!

 In 2010,
    revenues of $90 million & a net loss of $328,000

 Biggest Investors.
   Crosslink Capital (23%), Walden Venture Capital (19%),
   Greylock Partners (14%)

 Founder Tim Westergren owns less than 3% of the
   company’s revenues
 In Feb 2011, Pandora anounced that they are going
  public offering over a $100 million in Common stock

 Recent partnerships with automakers BMW,         Ford
  and Toyota to integrate Pandora into their
  dashboard 

 However, royalties are its biggest expense!! 

And it’s only least safe till 2015 ! Because…
 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

 May switch over to Pay-only Music services 

 Ever-increasing massive iPhone User base 

 The present PANDORA may very well prove to be Radio’s Future…

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Pandora

  • 1. Company Review PREETI J. PILLAI
  • 2.  Internet Radio Service  Others 1. Pandora Mobile for BlackBerry 2. Pandora Applications for multiple platforms  Facebook  Sidebar Gadget for Windows Vista, 7  Mobile Apps for iPhone, iPad, iPod, Android, Blackberry & Windows Mobile  Livio Radio sells a Radio just for Pandora!
  • 3.  Founders  • Tim Westergren (Recording Technologist) • Will Glaser (Computer Scientist & Mathematician) • Jon Kraft (Entrepreneur in S/W & new Media) These guys brainstor med Pandora Media in the Fall of 1999 in an L.A. bar..  Their First Mega project  their patented “a recommendation algorithm to organize music”
  • 4.  Music Lovers everywhere who wish to listen to their favorite singers/genres only  Limited within the US due to compulsory license issues for Internet Radio  Currently more than 80 million listeners(2011) compared to 20 million in 2009! Adds a new registered user every second on average  Free as well as paid services
  • 5.  Their competitive recommendation system  Personalized Internet Radio  Unlike Apple’s iTunes, Pandora took advantage of a compulsory ‘US license for Internet Radio’ that allowed one to pay for streaming recorded music  Other competitors at that time negotiated with individual labels to stream music and were unsuccessful in making money  Pandora paid for „performance royalties‟ rather than broadcast royalties
  • 6. Unlimited Channels Not Live, hence 24/7 availability Uncluttered All kinds of Music Fresh WiFi /3G /4G All registered Users
  • 7.
  • 8.  Though the company started making a profit post-2000, it has till date, accumulated a deficit of $83.9million !!  In 2010, revenues of $90 million & a net loss of $328,000  Biggest Investors. Crosslink Capital (23%), Walden Venture Capital (19%), Greylock Partners (14%)  Founder Tim Westergren owns less than 3% of the company’s revenues
  • 9.  In Feb 2011, Pandora anounced that they are going public offering over a $100 million in Common stock  Recent partnerships with automakers BMW, Ford and Toyota to integrate Pandora into their dashboard   However, royalties are its biggest expense!!  And it’s only least safe till 2015 ! Because…
  • 10.  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  May switch over to Pay-only Music services   Ever-increasing massive iPhone User base   The present PANDORA may very well prove to be Radio’s Future…