Here is a business analysis of Pandora in 2014. We considered Pandora's financial stability, SWOT analysis, internal and external analysis, business strategy. Prognosis is based on above factors. Comments are very welcome.

1. 1
PANDORA
Team - Tablets!
Mrikondu Barkakati Chithroobeni Shankar Yufei Shi Yixin Zhao!

2. 2
AGENDA
1. Background!
2. Prognosis Criteria!
! - Market Trends!
- Financial Health!
- Internal & External Factors!
- Strategy!
3. Recommendations

3. 3
BACKGROUND
240M+ Users!
4 Billion Market Cap!
77% Market Share!
2014
2011!
At IPO
100M+ Users
2000
Founded!

4. 4
BACKGROUND
Enrich people's life by enabling them to ENJOY music they know !
and discover new MUSIC they will LOVE
Revenue & Distribution
- Individuals and businesses!
- Free & Subscription Model $4.99!
- Revenue from ads & subscription
Mission

5. 5
PROGNOSIS CRITERIA
Financial HealthMarket Trends StrategyInternal & External !
Factors

6. 6
MARKET TRENDS
Internet Radio Digital Ads
!
- S&P predicts positive feature.
!
- Forbes predicts $11 billion
mobile ads revenue in 2016.

7. 7
FINANCIAL HEALTH
-125
0
125
250
375
500
Jan 2011 Jan 2012 Jan 2013
Revenues
COGs
Net Income
Cost Breakup
23%
4%
64%
9%
G&A COGs Product Development Sales
Gross margin = 40%

8. 8
FINANCIAL HEALTH
Pandora Media Inc. NYSE: P
0
6.5
13
19.5
26
June 2012 June 2013 June 2014
Market CAP = 4B
Royalty Rates By CRB vs ad RPMs
0
15
30
45
60
2012 2013 2014 2015
Cost per song for Free listener
Total ad RPMs

9. 9
INTERNAL FACTORS
Strengths Weaknesses
- Music Genome Project!
- Large and Growing User Base!
- Brand and Reputation!
- Multiple platforms!
- Targeted Ads!
- Pandora for business
- Licensing Restrictions!
- Low Customer Retention

10. 10
Opportunities Threats
- Large potential market size!
- Technological Advances!
- Increasing cost of content!
- Competition!
- Macro-economic Factors
EXTERNAL FACTORS

11. 11
STRATEGY
Increase!
expenditure !
on product !
development!
Expand
across devices
and platforms!
Try to reduce
content
acquisition
costs!
Focus on !
improving
mobile & ad
platform

12. 12
PROGNOSIS-STATEMENT
Although Pandora will not make significant
profits, it will still remain the leading player in
the internet radio market.

13. 13
RECOMMENDATIONS
- Content acquisition!
Reduce Cost
- International market!
- Music inventory!
- Non-music domains!
Expand MarketProduct Development
- Customization!
- Feature Parity!

14. 14
CONCLUSION
In 2016, Pandora will remain the leading player in the internet radio industry.