Quick Look: Pandora at a Glimpse
- An Automated Music Recommendation Service
- Pandora’s Revenue: $ 274, 000, 000 (for the financial year 2012)
- Pandora’s Net Income: $ 16,000,000 (for the financial year 2012)
- Industry: Communication
- Founders: Will Glaser, Jon Kraft, Tim Westergren
- CEO: Joe Kennedy
- Year of Establishment: January, 2000
- Country: United States
- Headquarters: Oakland, California
Pandora internet radio, an automated music recommendation service, was co-founded by Tim Westergren. Pandora was earlier known as Savage Beast Technologies. The initial technology was developed by Glaser and Tim Westergren with an aim to bring together the different styles of music. Savage Beast Technologies was renamed as Pandora Media. In 2005, it launched Pandora Radio. An announcement to purchase FM radio station KXMZ in South Dakota was made by Pandora on June 11, 2013. Currently, it is catering more than 34 million listeners. The Pandora radio has become an app for various smart phones, such as iPhone, windows and android. Tim Westergren has an estimated net worth of $ 22 million. Currently, he holds a stake in Pandora radio with 2,214,991 shares. The price of each share of Pandora is $9.8.
- Pandora is available on the Google Android OS.
- Pandora is available on the iPhone with authorized installations and downloads.
- Facebook Application: To allow Pandora users to update their radio stations on their Facebook profiles, a Facebook application was developed, which was removed in 2012.
- Home CE Devices: Pandora can be played on home CE devices, like Google TV, WD TV, Blu-ray players, audio-video receivers, and Roku.
- Playable in Vehicles: Pandora can be played in various vehicles, such as Honda, Ford, Nissan, MINI, Toyota, GMC, BMW, Mercedes Benz, etc.
- Pandora Podcast: It is a musicology show, which is updated in every week in the form of a podcast. Each show features guest musicians and Pandora experts.
- Sidebar Gadget: Pandora has launched a slide bar gadget for Windows 7 and Windows Vista. It specializes in retaining original skip limit without ads.
Pandora business model is concerned about the fact that the company cannot make large profits as the more music its users listen to, the more it has to pay royalties. In order to overcome the situation, Pandora agreed to be a consumer-oriented music discovery service, especially a non-interactive radio station. Pandora is presently operating its function with the manufacturers of system-on-chip, in order to sale hi-tech chips to Sony, Samsung, and Panasonic. The cost structure of the company is inconsistent. The company is associated with three main costs, namely content fees, licensing fees, and monthly fixed fees. The ever-changing cost structure has widely affected the operating leverage of the company.
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The subscription revenues reveal that the company has signed up more and more paying subscribers in the last quarter. Pandora is establishing itself a service, providing benefits to the customers. As it shifts from relying on third-party ad networks for selling ad inventory at premium rates, its mobile revenues will likely improve.