logo
Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?

Register
    

 


Why Pandora is Soaring

  +Follow October 2, 2013 10:34AM
Share:
Tickers Mentioned:

Like Napster and iTunes before it, Pandora Media, Inc. (P) changed the way users listen to music. While Rhapsody pioneered internet music streaming in 2001, Pandora took it to the next level, and has dominated the medium for five years. While other streaming-radio services have since followed Pandora’s lead, the Oakland, Ca.-based company hasn’t lost a step, and on Oct. 1 touched an all-time high north of $27 a share. But in an increasingly crowded marketplace, facing competitors with superior libraries and features, the question is how they not only stay relevant, but dominant.

Apple Inc. (AAPL) , who still have 62 percent of the total digital music market with iTunes, launched iTunes Radio last month. An app which came with the iOS 7 download,  iTunes Radio added yet another viable streaming service for Pandora to deal with, who already have to contend with Google Inc.’s (GOOG) Google Play, not to mention Rdio, and Spotify.

The privately-owned Spotify and Rdio are especially dangerous competitors. They boast several advantages over Pandora: music libraries of over 20 million songs to Pandora’s 1 million; no cap on free listening (Pandora only allows 40 hours a month before charging); and in the case of Rdio, a state-of-the-art interface that provides a “visceral and beautiful” user experience.

Yet, Pandora keeps on trucking. They responded to the renewed competition by reporting a 25 percent uptick in active users, who now total 72.7 million. It seems counterintuitive, as the other services offer seemingly superior products. But Pandora isn’t succeeding by means of being better, but rather because listeners don’t want to abandon the work they’ve put in already. As they are becoming accustomed to the idea of using several platforms at once, Pandora survives because people are used to it and don't see it as an "either/or" choice.

Pandora’s main appeal is that users can craft radio stations tailored to their preferences via a series of “thumbs up” or “thumbs down” to certain songs. Simply put, users have already put a lot of work into designing their Pandora stations, and they don’t want to start over. Users who have been with Pandora since the beginning are likely to prefer the service to other sites that haven’t had the time to amass, as the Spokesman asserted, “the intelligence that Pandora has gained from tens of billions of interactions.”

According to some critics, the continuing success of Pandora could just be a sea change away from broadcast radio to internet – an “all boats rise in high tide” kind of market. ComScore analyst Andrew Lipsman compared streaming music companies to social media, saying "Look back to Facebook Inc. (FB) and MySpace as an example. There were a lot of people using those things in parallel at the same time."

Pandora rose 6.37 percent to hit $27.16 a share. On Oct. 1 Cannacord Genuity raised their price target from $25 to $30 a share.

 

(image courtesy of Flickr)

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer


Liked What You Read? Join Equities.com as a contributor and get eyeballs on your content FOR FREE!

Results for goog
Antonio Costa
28 May 15 22:21:00
$GOOG WSJ: How Google Aims to Delve Deeper Into Users’ Lives http://t.co/mmIJU1NUyH
Invest | Donate
28 May 15 22:18:43
@IHNASDAQOMX: WDC Western Digital Corp. Bid http://t.co/O2pKi8OUr6 $WDC $AMAG $GOOG $TGT #WDC #invest #stockmarket
FinBUZZ Just-IN
28 May 15 22:14:36
See why these assets are trending in 1 watchlist $SENSEX $GPRO $GOOG $EURUSD http://t.co/wTNsMOFNG9 http://t.co/WdwATMI7WE
Bradley
28 May 15 22:13:06
Find your own trading path. $MAT $TSM $IWM $PFE $GOOG $AAPL $DRC $LVS $CL $WTW $APC $GDX http://t.co/l9JkTCtpHR http://t.co/I2ZLC8h3Tw
Apple News Outlet
28 May 15 22:08:39
RT @Stockology101: How Google Aims to Delve Deeper Into Users’ Lives: http://t.co/k3gTz1gykk $AAPL $GOOG $PCLN $K
Clayton R.
28 May 15 22:07:18
$GOOG http://t.co/zzGEvirsQD With Android Pay, Google Closes Gap With Apple In Mobile Payments http://t.co/q9591HNlUB
Antonio Costa
28 May 15 22:04:16
$GOOG $AAPL $MSFT Google Photos’ Unlimited Free Storage Could Clobber Apple’s Expensive iCloud http://t.co/V97MG49vk3
Action Jackson
28 May 15 22:01:13
@BloombergTV "@Google's biggest news from I/O 2015 in under 3 minutes #googleio2015 http://t.co/WxrqP55qlW " $GOOGL $GOOG $QQQ $XLK $AAPL
StockNewsWires
28 May 15 22:01:02
$GPRO $GOOG: Google and GoPro team up for virtual reality: http://t.co/Sb9SvUrigv
OM_giveaways
28 May 15 22:00:21
Learn stock technical analysis and charting. http://t.co/6TAu75F3hy $AAPL $GOOG $JRJC $LIVE $INTC $TWTR http://t.co/O3LFkV9QaX
Alpha Maven Alerts
28 May 15 21:59:39
$GOOG active, relative volume: 3.47, 1H, 1:00 AM, #nasdaq $NDX $SPY
nasdaqfan
28 May 15 21:54:07
XLE Energy Select Sector SPDR Exchange http://t.co/HDjqHaQWd2 $XLE $GOOG $TSLA $UA #XLE #stock #investing
Stock Forums
28 May 15 21:52:01
XME SPDR S&P Metals & Mining Index % Change http://t.co/QPn0BZB8uC $XME $PRTA $GOOG $QCOM #XME #invest #nasdaq
The Stock Professor
28 May 15 21:52:00
How Google Aims to Delve Deeper Into Users’ Lives: http://t.co/k3gTz1gykk $AAPL $GOOG $PCLN $K
IH NASDAQ OMX
28 May 15 21:51:56
WDC Western Digital Corp. Bid http://t.co/4l7Rq0qWhj $WDC $AMAG $GOOG $TGT #WDC #invest #stockmarket
danrocks
28 May 15 21:49:34
WMIH WMI Holdings Corp. News http://t.co/yMdZmCQ3UO $WMIH $CHK $GOOG $UA #WMIH #investing #stockmarket
Stock_Tracker
28 May 15 21:49:34
VLO Valero Energy Corp Filings http://t.co/cS2fMcbVZb $VLO $GOOG $INTC $PMCB #VLO #tradeideas #finance
Stock Forums
28 May 15 21:49:13
UUP PowerShares DB US Dollar Index Bullish Fund Chart http://t.co/VqjS63YTgE $UUP $JBLU $GOOG $OCAT #UUP #finance #stock
Emylers
28 May 15 21:49:09
UNG United States Natural Gas Fund Shares http://t.co/LOmeNs6zZ0 $UNG $WDC $GOOG $MDY #UNG #stock #stockmarket
Investors Hangout
28 May 15 21:49:07
ULTA Ulta Salon Cosmetics & Fragrance Inc. Summary http://t.co/zVLgGlmP0U $ULTA $GOOG $IMAX $ABX #ULTA #share #investing
Investors Hangout
28 May 15 21:47:35
TGT Target Corp. Ex-Div Date http://t.co/Hk3CH9OzDF $TGT $IEF $FCX $GOOG #TGT #invest #stocks
Lucky Jimmy
28 May 15 21:46:37
SMH Market Vectors Semiconductor P/E Ratio http://t.co/4b3mYAGSI8 $SMH $ABMD $GOOG $USO #SMH #finance #nasdaq
Stock_Tracker
28 May 15 21:46:19
QLD ProShares Ultra QQQ Fund 52Wk Low http://t.co/MSrFik2hMX $QLD $GOOG $EA $ADMD #QLD #nasdaq #stockmarket
Investors Hangout
28 May 15 21:44:51
QCOM QUALCOMM Inc. Change http://t.co/ZpIv3IFUqw $QCOM $CVX $GOOG $ECIG #QCOM #pennystocks #stockmarket
Investors Hangout
28 May 15 21:44:50
QLD ProShares Ultra QQQ Fund Ask Size http://t.co/7enaJ6CeCH $QLD $GEVO $GOOG $ACWI #QLD #finance #stock
IH NASDAQ OMX
28 May 15 21:44:41
QCOM QUALCOMM Inc. Investor Opinions http://t.co/boomRs8BNG $QCOM $GOOG $JPM $TWTR #QCOM #finance #investing
Emylers
28 May 15 21:44:39
POT Potash Corp. Saskatch, Inc. Stock Forum http://t.co/kPf7moo1D9 $POT $NVAX $VLO $GOOG #POT #finance #tradeideas
Jake13
28 May 15 21:43:18
NTES http://t.co/NMKXmBeXNO, Inc. Volume http://t.co/ZRP8iZppMx $NTES $GBGM $GOOG $SHAK #NTES #invest #pennystocks
leahanne
28 May 15 21:43:15
MOMO Momo Inc. Shares http://t.co/4JLRvcPwV8 $MOMO $GOOG $EDC $ECIG #MOMO #stockmarket #finance
clayton
28 May 15 21:43:15
MNST Monster Beverage Corp. Short Sales http://t.co/cIvV9a2XC7 $MNST $ADMD $SMH $GOOG #MNST #finance #stockmarket
Ishika Alani
28 May 15 21:42:07
RT @CityFalconFolio: Our founder's analysis of $YNDX, the $GOOG of Russia http://t.co/GadyOeNanp #investing #trading #fintech http://t.co/5…
danrocks
28 May 15 21:42:05
LVGI Limitless Venture Group Inc. Financials http://t.co/jCPDri7UeM $LVGI $CL $SGNL $GOOG #LVGI #investing #stocks
jim50
28 May 15 21:41:04
JMEI Jumei International Holding Ltd. E.P.S. http://t.co/gmb62iRvuy $JMEI $HAL $GOOG $BRCM #JMEI #investing #finance
Bradley
28 May 15 21:41:04
Catch a winner in LIVE CHAT $GOOG $PCLN $TWTR $FB $AAPL $EBAY $GM $DUST $BABA http://t.co/l9JkTCtpHR http://t.co/pKuWDiWczL
PolgarStocks
28 May 15 21:39:12
GOOG Google Inc. - Class C Change http://t.co/ZDAML3AZuv $GOOG $EBAY $UNG $LMT #GOOG #stocks #tradeideas
Rosner Stocks
28 May 15 21:39:12
GOOG Google Inc. - Class C Yield http://t.co/y46MNkN0Y8 $GOOG $TLT $EBAY $IYT #GOOG #nasdaq #pennystocks
PolgarStocks
28 May 15 21:39:11
GOOG Google Inc. - Class C 52Wk High http://t.co/Nz6IZT9A46 $GOOG $GS $DIA $GILD #GOOG #pennystocks #pennystocks
Investors Hangout
28 May 15 21:39:09
GOOG Google Inc. - Class C E.P.S. http://t.co/xjGti2f8hc $GOOG $NRZ $JNSH $XRT #GOOG #pennystocks #invest
Stock_Tracker
28 May 15 21:39:08
GOOG Google Inc. - Class C Prev Close http://t.co/A2awyGhLhJ $GOOG $USO $CSCO $CMG #GOOG #nasdaq #nasdaq
clayton
28 May 15 21:39:07
GOOG Google Inc. - Class C Ideas http://t.co/spzJLiZAVF $GOOG $YELP $MRK $DEPO #GOOG #investing #share
DennyT
28 May 15 21:39:06
GOOG Google Inc. - Class C Message Board Posts http://t.co/WdPIxR8L9w $GOOG $TNA $TSLA $GDX #GOOG #share #stocks
lookn4wins
28 May 15 21:39:06
GOOG Google Inc. - Class C Tick http://t.co/iPOZoyfRLF $GOOG $DAL $CL $STX #GOOG #share #stockmarket
Investors Hangout
28 May 15 21:39:05
GOOG Google Inc. - Class C Change http://t.co/2bLQ3v6vbA $GOOG $RAI $MRK $GLD #GOOG #nasdaq #stockmarket
TalkMarkets
28 May 15 21:39:00
Bank Of America Remains Bullish On #Google Inc. Ahead Of I/O Developer Conference $GOOGL $GOOG http://t.co/EXLKZCQa48
Investors Hangout
28 May 15 21:38:05
GOOG Google Inc. - Class C 52Wk High http://t.co/GltG4i6pkm $GOOG $CCI $NAT $T #GOOG #stocks #pennystocks
Stock_Tracker
28 May 15 21:38:05
GOOG Google Inc. - Class C E.P.S. http://t.co/pNm1kSZyFX $GOOG $FEYE $HMHC $V #GOOG #finance #pennystocks
Investors Hangout
28 May 15 21:38:05
FXI iShares FTSE China 25 Index Fund Open http://t.co/ht3kN0UpsA $FXI $JNK $TWTR $GOOG #FXI #invest #stocks
danrocks
28 May 15 21:38:04
GILD Gilead Sciences, Inc. News http://t.co/TricIwT4Tv $GILD $QCOM $GOOG $TLT #GILD #stockmarket #share
Emylers
28 May 15 21:37:08
EBAY eBay, Inc. Message Board Posts http://t.co/Ys2J9D0tKK $EBAY $GOOG $OZRK $IBB #EBAY #investing #tradeideas
clayton
28 May 15 21:35:37
DIA SPDR DJ Industrial Average ETF Trust Last Trade http://t.co/HDlJ5lyNpC $DIA $ACT $FXE $GOOG #DIA #nasdaq #tradeideas
				
				
  +Follow October 2, 2013 10:34AM
Share:

Comments

 

blog comments powered by Disqus

About us

Equities.com is the most advanced interactive online social ecosystem for the financial industry, serving as a resource center and next-generation communication platform that connects self-directed investors with public issuers, market experts, and professional service providers and vendors. Registered members can leverage our exclusive proprietary research tools such as the Small-Cap Stars, which outperformed 90% of all small-cap mutual funds, and robust do-it-yourself E.V.A. research reports. The Equities.com Issuer Dashboard is the ideal tool to communicate and manage investor awareness campaigns to the investment community, as well as to access valuable resources to help your company grow.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.

Login or Register

LOG IN