Pandora doesnít need to be the biggest to survive

in General Topics Mon Jul 10, 2017 5:17 am
by Search123 • 16 Posts

pandora rea So hereís my big question: does Pandora have a path to profitability? And if it doesnít, can it stay public, or will it need to find a way to be acquired or go private? We know, based on the quarterly earnings reports, that the growth of its traditional radio business has been slowing down in recent years, and that it struggled to turn a consistent profit on those ads. It did have a paid tier with some fancy features, but that never seemed to catch on. Now, the paid streaming service was meant as a way to diversify its revenue streams and boost profitability. But there are two big problems there. So far, Pandoraís efforts seem to have little traction with consumers. Second, and more importantly, Spotify shows that even at 30 million paid subscribers, it can be nearly impossible to turn a profit on streaming music, since upwards of 70 percent of your revenue is flowing back out the door to pay rights holders their royalties. I wouldnít count them out yet. It depends on how youíre looking at it. From Westergrenís perspective, he came back, ignited a new revenue stream, and got Pandora $480 million in new capital to maximize it with. Given that the streaming service is only three months in, Iím not willing to say itís DOA, but it certainly needs to pick up the pace if it wants to compete on a global scale. There are a pandora rea online few ways Pandora can turn this around Tidal has less than 4 million subscribers at last count, but somehow itís turned into a $600 million business. Deezer is still alive with around 6 million subscribers. Just because Pandora doesnít have Spotify or Apple Music numbers doesnít mean it canít continue to operate. And letís not forget the 78 million users Pandora has on the ad-supported tier. There arenít many companies with that amount of users that die off that often, and I donít expect Pandora to be the exception.

pandora smycken rea Absolutely it has a way forward. Pandora doesnít need to be the biggest to survive, it needs to have valuable differentiators. Iím wondering what will happen with connected cars now that Sirius has a stake in Pandora. Individually theyíre two of the biggest options for satellite radio in cars. Joining forces on that front could be an edge other companies canít currently compete with. As far as Tidal, it has a valuation of $600 million, but itís still losing millions on revenue. Most streaming companies are in this same position as they try to figure out what the future of streaming will look like in the midst of every portion of the music industry from songwriters to labels trying to find common ground on payouts, promotion, and access. Dani, you raised a really interesting point back in April, pandora berlocker rea when you wrote about how strong the Pandora brand is with the country music community. This is an audience that, while not overlooked by other big streaming services, isnít exactly being put front and center. If country fans are statistically more loyal and more likely to spend, perhaps Pandoraís play should to start spending on exclusives and marketing that target this audience.

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