Pandora Radio: Fire Unprofitable Customers? By Chih-Hsin Chen and Pinar S. Ozer 11.10.11 Management Information Systems -INFO 503 Prof. Ross Malaga Fall 2011 Online Radio History Before 2000 The beginning of online radio could trace back to the 1990s. Arround year 1996‚ Nullsoft and Microsoft released streaming audio players as free downloads. Internet radio attracted significant media and investor attention in the late 1990s and the early 2000s. Pandora Radio Started
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Of Doing Business: Pandora Radio As if the music industry has not seen enough change in recent years‚ Pandora Radio has started yet another music revolution. This time‚ however‚ the revolution is not about how the music is stored and collected (LP/CD/MP3 transformation)‚ or how music is purchased (Record Stores/ iTunes transformation)‚ but how we actually listen to music. Pandora Radio has created an amazing technology‚ which allows users to create and customize their own radio stations that automatically
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Pandora currently has over 80 million users in the United States and adds nearly 600‚000 new subscribers every week. They also dominate the internet radio market segment with over 50% of all internet radio hours being listened to on the internet being done at Pandora.com. Pandora’s unique music listening system allows users to select a favorite musician‚ genre or class of music and using specialized computer algorithms‚ create a personalized radio station that not only plays the music the user selects
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One of my favorite radio medians is Pandora Internet Radio. I enjoy Pandora for the simple fact of variety there over a 700‚000 songs in the database. (PANDORA) There are many great radio stations out there. However‚ after awhile they continue to cycle through the same songs over and over. With Pandora the listeners can suggest specific artists‚ or genres of music‚ or a comedian and Pandora not only plays that artist‚ but artist that are similar to them through that station. Through the Music Genome
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strategy. Eventually‚ Pandora had no choice but to to reintroduce a subscription model and cap free listening hours at 40 per month‚ and request ‘a buck for the tip jar’ for the remaining days in the month. • Advertisement Based: One of the key elements to Pandora’s advertising strategy is that they have to ability to leverage their user database with demographic and geographic information that would allow advertisers to stream custom advertisements to their audience. Pandora was able to provide
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Pandora Media‚ Inc.‚ formerly Savage Beast Technologies Incorporated‚ is an internet radio service in the United States‚ Australia and New Zealand. Pandora Media‚ Inc. is a free personalized radio that plays music and comedy. It has music and comedy alike that all can enjoy. You just have to start with the name of a favorite artist‚ song‚ comedian or composer and Pandora will create a custom station that plays those similar tracks for your hearing. There are hundreds of music and comedy genre
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Pandora Case Analysis Abstract Pandora provides personalized Internet radio stations to its customers. Pandora provides this customized radio free of charge to its users. In combination with other business models‚ Pandora has successfully implemented the freemium business model in which 99% of its users receive a free service and 1% of the users pay for premium services. This business model is not appropriate for every type of business but can be profitable for some types of businesses
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Question 2 Slide 1 and 2– Pandora Horizontal conflict Pandora used to have its target on desktop usage. Now it is switching to mobile and cars‚ with mobile adds growing faster than any other form. (We are going to see the numbers later). This happens to create an internal horizontal competition among its vehicle distribution channels and causes a necessity to invest resources in each of them at the same time. Slide 3 – Pandora vertical conflicts Pandora’s membership v.s. advertising sales
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10. Pandora: Disintermediator or Disintermediated? For Pandora‚ one of the biggest players in Internet radio‚ figuring out the future is both challenging and intimidating. If the regular challenges of growing a new company aren’t enough‚ Pandora also faces a market that is reeling in turmoil. In the new digital world‚ the way people listen to music continues to change dramatically. It seems likely that Pandora will either lead the changes or fall victim to them. Pandora was founded just over a decade ago
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some key elements changed. These element changes were major catalysts in leading Pandora through its venture from a company who in late 2005 was faced with major financial issues‚ to in 2013 the most successful business for subscription to radio service. Pandora coming into the race had a first -mover advantage because they were the first on the music supply scene with an algorithm that puts together a personal radio station based on the consumer’s tastes. This algorithm customized the consumers
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