Pandora's 80 mm monthly active users spend over 20 hours
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Mon Jul 10, 2017 5:17 am
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pandora charms sale Pandora's 80 mm monthly active users spend over 20 hours a month on the platform. We believe high single digit annual ad revenue growth in '18-'20 should be achievable through a combination of rising ad load and rising ad prices as Pandora continues to target the $15 bn terrestrial radio market and even larger mobile display market. Today it garners roughly 5% of the radio market, yet its listening share is approximately 10% - a gap that should narrow over time. As long as ad revenue per hour of listening growth exceeds the roughly CPI indexed growth in music cost per hour, gross margins should expand nicely (see Exhibit 1) in our view. HSD ad revenue growth, we believe, helps support 15-16% EBITDA margins in the core radio business by 2020 and gets Pandora to FCF positive by 2019. There are both offensive (the subscription music market is booming) and defensive (it may cut into ad supported listening) reasons for Pandora to offer a premium subscription product. The argument for cutting its losses and exiting premium pandora charms uk on-demand stems from the competitive dynamic. Specifically, the competitive set (Amazon, Apple, Spotify) are all operating with: a) greater scale, and b) utilizing music services to drive a broader and much larger product offering, implying stand- alone economics are less important. We cut our estimates significantly to risk- adjust for this challenging landscape, although the lack of profits from subscription in our prior forecast limits the impact of these cuts to our valuation.
pandora charms sale uk Furthermore, Pandora's large user base has provided the company with room to grow its share of advertising, he contends. "Pandora's 80 mm monthly active users spend over 20 hours a month on the platform. We believe high single digit annual ad revenue growth in '18-'20 should be achievable through a combination of rising ad load and rising ad prices as Pandora continues to target the $15 billion terrestrial radio market and even larger mobile display market," Swinburne noted. Pandora announced today that CEO Tim Westergren has stepped down from his role as chief executive and is giving up his seat on the board. This is the second departure for Westergren, who helped found the company and took it public. He transitioned to a strategy role after the IPO while pandora sale uk Pandora was ran by a series of professional managerial types. Westergren returned to the helm in 2016 as Pandora, struggling to turn a profit, ventured into the on-demand streaming space occupied by Spotify and Apple Music. Sirius XM, which provided Pandora with a major cash infusion this month, is reportedly not keen on the development of a premium on-demand service, which had been championed by Westergren. His departure opens up doubts about how committed the company will be to its new service.