Pandora is an online music streaming service that provides personalized radio stations based on a user's favorite artists, songs, or genres. It analyzes songs through its Music Genome Project to tailor stations for each listener. While Pandora has over 125 million users and is available on many devices, it faces challenges from competitors like Apple and Spotify, and risks from high royalty fees and a weak business model where costs exceed revenues. Pandora aims to broaden its listener base internationally and through new devices and content while focusing on execution to remain competitive.
This report was created as part of my Social Media Marketing Certification project which I completed in Jan 2013. It looks into current approach for customer conversion of the Website, and suggests strategic improvements necessary for the company.
Slides for a webinar I gave on June 27, 2013 covering the state of webcasting, digital music, and online marketing, with a focus on Pandora and the potential threats presented by Apple's iTunes Radio service. Featuring a significant amount of digital music industry economic data, and mapping out the value chains for digital music distribution.
This report was created as part of my Social Media Marketing Certification project which I completed in Jan 2013. It looks into current approach for customer conversion of the Website, and suggests strategic improvements necessary for the company.
Slides for a webinar I gave on June 27, 2013 covering the state of webcasting, digital music, and online marketing, with a focus on Pandora and the potential threats presented by Apple's iTunes Radio service. Featuring a significant amount of digital music industry economic data, and mapping out the value chains for digital music distribution.
My group and I researched Spotify, who is currently dominating the online streaming industry. In our project we were able to find Spotify's value proposition and target market. Using this information, we were able to discuss and evaluate their current digital marketing strategies and how they could improve. We also provided a competitive analysis against their two main competitors, Apple Music and Pandora.
Spotify's business model and copyright infringement issueYeonKyung Lee
- Time: February 2014
- Organization: College(undergraduate)
- Class: Network Economy (Economics)
- Project description: Research on Spotify's business model and copyright infringement issue.
Presentation on Marketing Plan of Spotify extending it's services to India created by Abhinav.U, IIT Madras, during a Marketing Internship by Sameer Mathur
PowerPoint presentation about the most popular music streaming app nowadays: Spotify.
Type of file: .pptx
Fonts: "Montserrat Black" and "Montserrat Light"
Theme made by me.
Disclaimer: I don't own Spotify, this is a simple school presentation.
Spotify Marketing Campaign for Marketing Theory & Practice Mary Peters
Spotify provides a music streaming service used primarily by millennials since they seek a trendy and personalized music experience. Since it was launched in 2008, it has over 140 million users with 60 million users paying for its premium service, used in over 60 different countries, and gives its users access to a library of music of more than 40 million songs. Spotify’s biggest competitors are Apple, Amazon, and Pandora. It differentiates itself by orienting its features around creating a truly personalized listening experience after purchasing a premium subscription which allows for offline streaming, ad-free listening, unlimited song skips, and complete control over their listening experience.
The Deck I Used to Raise $1.7M for My Startup EarbitsJoey Flores
This is the final version of the deck that I was using to fundraise for Earbits after going through the Y Combinator program. You can read about my entire fundraising experience at:
https://joeyflores.com/2019/03/25-fundraising-tips-from-raising-a-1-7m-y-combinator-seed-round-part-1/
Spotify Case Study (Managing Innovation)
Project descriptionThe aim of this study was to identify how Spotify structured its organization to implement the innovative idea of music and video streaming and keeps itself aligned with current changes in the marketplace. We provided an analysis on the business model of the firm, their approach at dealing with changes in technology and the business systems and their attempts at keeping abreast with the same.
My group and I researched Spotify, who is currently dominating the online streaming industry. In our project we were able to find Spotify's value proposition and target market. Using this information, we were able to discuss and evaluate their current digital marketing strategies and how they could improve. We also provided a competitive analysis against their two main competitors, Apple Music and Pandora.
Spotify's business model and copyright infringement issueYeonKyung Lee
- Time: February 2014
- Organization: College(undergraduate)
- Class: Network Economy (Economics)
- Project description: Research on Spotify's business model and copyright infringement issue.
Presentation on Marketing Plan of Spotify extending it's services to India created by Abhinav.U, IIT Madras, during a Marketing Internship by Sameer Mathur
PowerPoint presentation about the most popular music streaming app nowadays: Spotify.
Type of file: .pptx
Fonts: "Montserrat Black" and "Montserrat Light"
Theme made by me.
Disclaimer: I don't own Spotify, this is a simple school presentation.
Spotify Marketing Campaign for Marketing Theory & Practice Mary Peters
Spotify provides a music streaming service used primarily by millennials since they seek a trendy and personalized music experience. Since it was launched in 2008, it has over 140 million users with 60 million users paying for its premium service, used in over 60 different countries, and gives its users access to a library of music of more than 40 million songs. Spotify’s biggest competitors are Apple, Amazon, and Pandora. It differentiates itself by orienting its features around creating a truly personalized listening experience after purchasing a premium subscription which allows for offline streaming, ad-free listening, unlimited song skips, and complete control over their listening experience.
The Deck I Used to Raise $1.7M for My Startup EarbitsJoey Flores
This is the final version of the deck that I was using to fundraise for Earbits after going through the Y Combinator program. You can read about my entire fundraising experience at:
https://joeyflores.com/2019/03/25-fundraising-tips-from-raising-a-1-7m-y-combinator-seed-round-part-1/
Spotify Case Study (Managing Innovation)
Project descriptionThe aim of this study was to identify how Spotify structured its organization to implement the innovative idea of music and video streaming and keeps itself aligned with current changes in the marketplace. We provided an analysis on the business model of the firm, their approach at dealing with changes in technology and the business systems and their attempts at keeping abreast with the same.
Mobile Workflow and the Showroom Process of the Near FutureJeff Kershner
By now, if you’re not already familiar with the term “Showrooming”, then you might want to pass on by this presentation.
If you ARE familiar with the term or at least understand the concept of Showrooming, then you will not want to miss out on this session full of the latest studies, rich data, best practices and ideas.
This presentation will not only get you up to speed on the latest and most important statistics around this common consumer action, but before you leave – you’ll understand and learn…
1. Why this now considered common way of shopping is not only here to stay but also how it has and will continue to quickly change and affect your showroom process and sales.
2. How to leverage technology and tablets (you already have) to your advantage by injecting it into your traditional “road to the sale” to build trust and regain control. Ultimately selling more vehicles while optimizing gross on the front end and selling more products on the back end.
3. What (free) applications you need pre-loaded on your dealerships mobile tablets that will re-establish a new and more effective workflow and process on your showroom floor.
4. Reduce sales employee churn by empowering your staff with instant knowledge and customer decision data that help them quickly achieve success right at the tip of their fingers - literally.
Other sessions may utilize this up and coming buzzword “showrooming” to educate you and offer different services, cutting edge marketing technology and the importance of mobile website design. While all very important, “Mobile Workflow and the Showroom Process of the Future” will prepare you long term on how adapt and change your overall strategy
Not only will your customers LOVE the new experience, but your sales team will instantly appreciate how much more effective and confident they become. Ultimately resulting in MORE than just another sale.
Why are tablets important for your business?
What makes tablets unique?
How to turn a tablet into a workhorse?
Industry examples of productive tablet use
Vinylmint is a non-union, freelance marketplace of voice actors, sound designers, and translators. Getting variety and quality in freelance sound talent is tough to find at an affordable rate. Vinylmint simplifies the search, transaction, and rights transfer for sounds.
TuneIn presentation @ European Radio and Digital Audio Show 2018ACTUONDA
TuneIn presentation @ European Radio and Digital Audio Show 2018
A look at TuneIn’s core benefits – one directory multiple platforms. Devices, reach, models, developments.
A review of the drivers and appetite for subscription models in Europe.
By Miles Palmer, representative of TuneIn for Europe.
The program of The European Radio and Digital Audio Show 2018 is coorganized by Nicolas Moulard (Actuonda) and Xavier Filliol (Les Editions de l'Octet) in collaboration with Phiippe Chapot (Editions HF).
www.salondelaradio.com
www.european-show.radio
netwealth educational webinar - Secrets of digital marketing with special gue...netwealthInvest
During a netwealth educational webinar on July 21 2016, Netwealth & Pandora explore the various digital marketing tactics and tools available to help drive greater awareness of your business and increase customer leads.
I share ideas for what Spotify (my favorite app) could be doing better as far as new product features and partnerships along with demographic data (see appendix). This deck is for fun and relates to personal opinions as a user along with real data. Enjoy it!
This session reviews the basics of digital revenues streams for musicians using online radio, download and streaming sites to promote and sell their music.
Reading for Assignment 2Pandora is the Internet’s most successfu.docxsodhi3
Reading for Assignment 2
Pandora is the Internet’s most successful subscription radio service. In January 2011, it had over 80 million registered users in the United States, and continues to add about 600,000 new subscribers a week—that's one new subscriber about every second! Pandora now accounts for over 50% of all Internet radio listening hours. Radio? In the Internet age of iTunes, Rhapsody, and listen-to-what-you-want-anywhere-anytime? Why would anyone want an online radio station to choose the music they will be able to hear? That’s so old school. Not exactly. At Pandora, users select a genre of music based on a favorite musi- cian, and a computer algorithm puts together a personal radio station that plays not only the music of the selected artist but also closely related music by different artists. How does the computer know about closely related music and music genres? Can a computer understand music? Not really. Instead a team of professional musicians listens to new songs each day and classifies the music according to over 400 musi- cal criteria including male or female vocal, electric vs. acoustical guitar, distortion of instruments, presence of background vocals, strings, and various other instruments.
These criteria are used in a computer algorithm to classify new songs into five genres: Pop/Rock, Hip-Hop/Electronica, Jazz, World Music, and Classical. Within each of these genres are hundreds of sub-genres. Like Taylor Swift? Create a radio station on Pandora with Taylor Swift as the artist and you can listen all day not only to some Taylor Swift tracks but also to musically related artists such as Carrie Underwood, Rascal Flatts, Anita Nalick, and others. The algorithm used to identify genres of songs is a result of the Music Genome Project conceived by Will Glaser and Tim Westergren in 1999. Westergren, a jazz musician, and Glaser believed it was possible to identify genres of music, and sub- genres, using their expertise (and that of other musicians) to identify similarities among artists and songs. They have identified over 400 factors to help classify songs, and leave it up to the computer program to select appropriate matches based on a user’s input of a selected artist. To some extent they are mimicking disc jockeys and radio program managers who had no trouble creating jazz radio, classical radio, and pop/electronica stations, and within these general categories, sub-groups of musi- cians who shared musical characteristics.
In 2005, Glaser and Westergren launched Pandora.com, a music service based on the Music Genome Project. Their biggest challenge was how to make a business out of a totally new kind of online radio station when competing online stations were making music available for free, most without advertising, and online subscription services were streaming music for a monthly fee and finding some advertising support as well. Actu- ally, their biggest challenge was to avoid going broke: over 80% of online music i ...
2. What is Pandora?
• Mission: “To play only music you'll love. (OK, we've
added comedy as well so we're also up for playing
some jokes you'll love.)“
• Type in favorite artists, songs, composers, genres (or
comedians) and Pandora provides up to 100 unique
“stations”
• Thumbs UP/ Thumbs DOWN Option
3. Music Genome Project
• Uses Music Genome Project to provide a unique tailoring of music for each
listener
• “The most comprehensive analysis of music ever undertaken.”
• Analyzes a world of songs that span over 100 years
• Suggests songs based on songs listeners give a thumbs up and down to
• Each song is listened to and analyzed for specific characteristics by
"musicologists"
• The Music Genome Project is updated daily basis
4. Organizational Information
• Headquartered in Oakland, CA
o Other Offices: New York, Los
Angeles, Chicago, Detroit, Atlanta, and Dallas
• Pandora is a public company whose stock is traded on
the NYSE at a price of $10.38 as of September
25, 2012
• Joseph Kennedy is the company Chairman and CEO
• Revenue FY2012: $274,340,000
5. Statistics
•
• Over 125 Million registered users in the United States
• Over 900,000 songs in its catalog
• Over 15 Billion Thumbs Up
o show they’re doing a good job of providing users
songs they like
7. Where to access Pandora
• Pandora has become an App on all smartphones
making their music accessible everywhere
• Available on over 600 different consumer devices
• Many stand alone players
o Roku
o Slim Devices
o Apple products
o Blackberry
o Android
o Windows Mobile devices
8. Types of Subscriptions
• Free Subscription
o Can listen to music at any time
o advertisements
• Paid Subscription
o Can listen to music at any time
o no advertisements
9. Pandora's Biggest Fear
Apple
• Apple Inc. is planning to introduce its own competing online custom radio
service through iTunes.
• The day after Apple’s plans emerged earlier this month, Pandora Media’s
stock plunged 17 percent and has still not recovered.
• Apple’s iTunes store had a 64 percent share of all digital music sold in the
United States for the second quarter
• With Apple’s reach, and its ability to pre-install an app to every mobile
device it ships, any Internet radio service it offers could quickly
• build a huge following.
10. Risk Factors
Risk Factors that could cause or contribute to differences from
projected financial status include, but are not limited to:
1. Competitive Factors
2. Ability to continue to innovate and keep pace with changes in
technology and our competitors in hypercompetitive markets
3. Ability to increase our listener base and listener hours
4. The operation in an emerging market and relatively new and evolving
business model
5. Ability to generate additional revenue on a cost-effective basis
6. Ability to continue operating under existing laws and licensing
regimes
11. Competitive Factors
• Spotify Radio is the biggest new feature in today's app release.
• Spotify offers 16x more songs to listeners at 15 million versus
Pandora at 1 million
• Spotify offers a bundled unlimited plan that allows you play
whatever song you desire.
• Spotify's goal is to become "ubiquitous" on all platforms, moving
quicker and quicker to shift its priorities towards mobile.
13. Competitive Factors
• Songza is based on the principle that using Pandora requires too
much thought.
• “Our whole premise is not that this is more gamified than Pandora, or
has more elite features,” Mr. Roman said. “It’s that this is simpler and
more directly related to the thing you want, which is music to make
whatever you’re doing better.”
• Songza carries no audio advertising because it makes money from
display ads and from partnerships with other media companies.
• When Songza introduced a new version of its mobile app this month, it
was downloaded 1.15 million times in 10 days shooting to the top of
Apple’s App Store rankings, passing Pandora.
14. Pandora's Business Model
and Problems
•
• The earnings report indicates that the vicious cycle
within Pandora's model is getting, well, more vicious.
• Unless Pandora can raise ad prices or increase the
number of ads it plays, it will remain in real trouble.
• Pandora has to pay royalties on every song it plays: the
costs rose to $101 million, while their revenues are
$80.7 million.
• Those royalty fees will increase in 2015, threatening
Pandora's long-term success.
15. Graph
. The graph shows that Pandora's revenues are falling behind its operating costs:
16. Pandora in trouble...
• Pandora is pushing users to write their Congressmen to support a
newly introduced bill called the Internet Radio Fairness Act.
• The issue is Pandora’s own weak business model.
• BTIG analyst Richard Greenfield, "the reason why companies such
as Pandora pay such high royalty rates as a percentage of
revenues is because they severely limit audio advertising to protect
the user experience and keep people on the platform. If Pandora
ran several minutes of audio ads per hour, the percentage of
revenues paid out as royalties would be dramatically lower. "
• Greenfield claims Pandora’s royalty rate should be increasing, not
decreasing, “which would force them to either increase the ad load
and survive at that ad load or find other ways of generating revenue
to sustain their service.”
17. The Future of Pandora
In the near future, Pandora is planning on:
• Broadening listener base
• Focusing on execution
• Getting on more devices
18. Broadening Listener Base
• Currently operating under licensing from the federal
government
• In 2014, negotiations will begin to determine the future
for after 2015
• Hopes to go international
• "Pandora's story in the US becomes so positive that it
becomes more and more ridiculous that we're not
licensed in other places"
19. Execution
• Only play music the listener wants to hear
• No changes to ruin the industry
• Expansion
20. Product Innovations
New Devices:
- Vehicles
Deal with companies such as Ford, Honda,
Acura
- Home Electronics
Televisions
Wifi Devices
New Content:
- Video
- Comedy
21. Questions
• How else do you see Pandora expanding?
• Do you think Apple's invention of their own music radio will
increase or decrease their revenue considering Pandora is
already so well known?
• Even though Pandora and many other emerging
technologies are so vulnerable to competition, why do you
think many people still choose to invest in them?
• Do you think Pandora would be as successful in other
countries as it is in the United States? Do you think it would
give them a competitive advantage?
• Would you pay to use Pandora?