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.


Liked What You Read? Join Equities.com and Connect With Your Favorite Financial Experts FOR FREE! Members of Equities.com gain access to our leading financial news and content, active social investment community, proprietary research tools including the 2014 Small-Cap Stars, E.V.A. reports and more.

Results for goog
Marcin Zientek
28 Jan 15 04:04:53
Next M&A & Activist Targets,Cash-Rich Tech Companies, Apple, Google, Yahoo Alibaba #Spinoff http://t.co/nvZmq9egYE $APPL $GOOG $YHOO $BABA”
OM_freebies
28 Jan 15 04:04:11
$GOOG $AAPL $FB $V Morning Reads “Apple Blowout” Edition – January 28th, 2015 http://t.co/0U3khfhaWz
Sara
28 Jan 15 04:03:43
Join me on tsū, is sharing social revenues with all of us. http://t.co/xycMWeldhM $LNKD $AAPL $GOOGL $GOOG $FB $YHOO http://t.co/2FZT5hLBW2
The Stock Professor
28 Jan 15 04:01:05
Why It’s Better to Be Apple Than AT&T: [at 24/7 Wall St.] - Apple put out its earnings th... http://t.co/hRzpCJxgMW $AAPL $GOOG $PCLN $K
Anthony
28 Jan 15 03:58:48
RT @Benzinga: Fast Money Picks For January 28: Alibaba, Google, Blackstone Group $BABA $BX $GOOG $GOOGL $XLP http://t.co/8VXC26KN1O
Osprey Flyer ^v^
28 Jan 15 03:58:24
RT @GoogleInvestor: Google Reports Earnings Thursday EPS Estimate $7.12 Revenues Estimate $18.5 Billion $GOOG $GOOGL $QQQ $XLK #Android htt…
Parabolicplease
28 Jan 15 03:56:19
RT @Benzinga: Fast Money Picks For January 28: Alibaba, Google, Blackstone Group $BABA $BX $GOOG $GOOGL $XLP http://t.co/8VXC26KN1O
PolgarStocks
28 Jan 15 03:55:44
$MDT Short Sales Updated Wednesday, January 28, 2015 06:07:23 AM $UUP $GOOG $FB $GDX http://t.co/RfEeF8fWf8
PolgarStocks
28 Jan 15 03:55:42
$IYT Reviews Updated Wednesday, January 28, 2015 06:07:23 AM $PFE $GOOG $XOM $OIL http://t.co/t5afe8d1OU
GyT M. de Capitales
28 Jan 15 03:52:32
Ahora $MSFT se encuentra como la sexta mayor del mundo, en tanto que $XOM sigue 2da., BKA-A 3ra., $GOOGL 4ta. y $GOOG en quinto puesto.
FinancePress
28 Jan 15 03:49:56
$GOOG Google Inc (GOOG) And Biogen Idec Inc Join Hands For Multiple Sclerosis ...: Google Inc (GOOG) And Biog... http://t.co/N0rkairk5Y
TradersLog.com
28 Jan 15 03:49:53
Google takes on translation http://t.co/PEEmLzr6qc $GOOG
Financial BUZZ Just-
28 Jan 15 03:44:05
Save 75% by finding the cheapest broker to trade US Tech Giants http://t.co/F3popBybWy $AAPL $GOOG $MSFT $FB $TWTR #spreadbetting #cfd
Matthew Kracht
28 Jan 15 03:42:06
@roberee $goog looks like a short
Roberee
28 Jan 15 03:37:33
$GOOG Welcome to the Southeast, Google Fiber. http://t.co/xglGdDwQmB
Stock Wire
28 Jan 15 03:32:06
Google Inc (GOOG) And Biogen Idec Inc Join Hands For Multiple Sclerosis ... $GOOG http://t.co/hDtkglItOy
シグレ@ドラマ〜
28 Jan 15 03:32:02
日本では普及しないかも $goog
ProTradersNews
28 Jan 15 03:26:05
$GOOGL $GOOG $BX: Fast Money Picks For January 28: Alibaba, Google, Blackstone Group: http://t.co/5Nfpl7AuyC
The Stock Professor
28 Jan 15 03:23:00
Up to Speed: Peltz receives ammo in fight against DuPont (Video): http://t.co/32fz9yiyjx $AAPL $GOOG $PCLN $K
Bidness Etc
28 Jan 15 03:22:15
Google X will be partnering with biotechnology firm Biogen Idec Inc - http://t.co/5mcTHI0AzB $GOOG $BIIB http://t.co/Za94RCyvwz
Quantpost Technology
28 Jan 15 03:21:21
$GOOG $GOOGL News: "Fast Money Picks For January 28: Alibaba, Google,…" http://t.co/NEuqAAFTOq Board view: https://t.co/jOJ3iiFC5A
Benzinga.com
28 Jan 15 03:21:20
Fast Money Picks For January 28: Alibaba, Google, Blackstone Group $BABA $BX $GOOG $GOOGL $XLP http://t.co/8VXC26KN1O
ProVesting
28 Jan 15 03:16:06
$GOOG $ABBV: Google Inc (GOOG) And Biogen Idec Inc Join Hands For Multiple ...: http://t.co/JWPZF0QDMm
Stock Hobbit
28 Jan 15 03:07:05
Logging in now to live stock chat http://t.co/v1eaRRes2Y $GOOG $AAPL $FB $EBAY #options #stocks #daytrading http://t.co/rRllVYC9GA
Sara
28 Jan 15 03:02:59
Join me on tsū, is sharing social revenues with all of us. http://t.co/xycMWeldhM $LNKD $AAPL $GOOGL $GOOG $FB $YHOO http://t.co/Az1gT7Bpjj
IH News Desk
28 Jan 15 02:59:14
$GOOG Filings Updated Wednesday, January 28, 2015 05:11:21 AM $QLD $LUV $SH $TBT http://t.co/aMi89PR4oz
The Stock Professor
28 Jan 15 02:45:01
Apple takes high road in China smartphone standoff with Xiaomi: http://t.co/3Iza65TE1p $AAPL $GOOG $PCLN $K
Credit Card Compare
28 Jan 15 02:31:34
This is What a Google Credit Card Would Look Like http://t.co/ag0bt0kifP #google $GOOG http://t.co/VmcmRjYIia
Mark Toro
28 Jan 15 02:31:11
RT @AtlBizChron: Google Fiber coming to metro Atlanta, but who knows when http://t.co/AtrHcppmr6 $GOOG http://t.co/rqOEoyhESJ
The Stock Professor
28 Jan 15 02:05:06
Apple's Earnings: The Staggering Numbers: http://t.co/SHE2FKBF2T $AAPL $GOOG $PCLN $K
Sara
28 Jan 15 02:03:44
Join me on tsū, is sharing social revenues with all of us. http://t.co/xycMWeldhM $LNKD $AAPL $GOOGL $GOOG $FB $YHOO http://t.co/fqve8yGMU3
PolgarStocks
28 Jan 15 01:53:19
$UCO Company Info Updated Wednesday, January 28, 2015 04:07:24 AM $EBAY $HYG $GOOG $XLE http://t.co/HvXBGRWdzv
TalkMarkets
28 Jan 15 01:51:27
T2108 Update – An Official Chopfest $DIA $SPY $VIX $SVXY $CAT $AAPL $GOOG http://t.co/pTPl19K0ul
Phil Dunn
28 Jan 15 01:50:03
Commented on: "IBM's OpenPOWER Foundation: What Is It And Does It Matter?" http://t.co/d45sirgXwi $IBM $ALTR $AMD $GOOG
Antonio Costa
28 Jan 15 01:40:55
$AAPL $GOOG Xiaomi ships 100,000 smart bracelets in less than 2 months http://t.co/oG7LrK90gC
The Stock Professor
28 Jan 15 01:26:10
Apple demand buoys SK Hynix and LG Display: [at Financial Times] - Apple's record results... http://t.co/LYjrev9VSk $AAPL $GOOG $PCLN $K
Sara
28 Jan 15 01:03:19
Join me on tsū, is sharing social revenues with all of us. http://t.co/xycMWeldhM $LNKD $AAPL $GOOGL $GOOG $FB $YHOO http://t.co/acwf7ylGXA
4-traders.com
28 Jan 15 01:01:46
#GOOGLE 'C' : President Obama proposes national broadband initiative http://t.co/b41O4mT8ZS $GOOG
4-traders.com
28 Jan 15 01:01:46
#GOOGLE 'C' : high-speed broadband network coming to Smyrna http://t.co/7fuRXxUXHu $GOOG
OM_giveaways
28 Jan 15 00:58:08
Learn stock technical analysis and charting. http://t.co/STnJTqyeL6 $AAPL $GOOG $JRJC $LIVE $INTC $TWTR http://t.co/xBTF5js9RN
IH News Desk
28 Jan 15 00:56:19
$TVIX Stock Message Board Updated Wednesday, January 28, 2015 03:11:21 AM $GOOG $CLF $TBT $AMGN http://t.co/rdgulzv7fD
IH News Desk
28 Jan 15 00:56:17
$BLTA Reviews Updated Wednesday, January 28, 2015 03:11:21 AM $AMGN $TASR $UNG $GOOG http://t.co/a1M9fXodif
Stock Hobbit
28 Jan 15 00:56:07
Logging in now to live stock chat http://t.co/v1eaRRes2Y $GOOG $AAPL $FB $EBAY #options #stocks #daytrading http://t.co/FptPTRhKCr
Jonathan Olsen
28 Jan 15 00:50:41
Buy Google Stock Invest in $GOOG on eToro http://t.co/euEjOsv937 #stocks
Hilton Cousins
28 Jan 15 00:50:41
Buy Google Stock Invest in $GOOG on eToro http://t.co/zArHjmCIXL #stocks
Stock Hobbit
28 Jan 15 00:50:08
Find active and helpful professional daytraders stock traders here http://t.co/v1eaRRes2Y $GOOG $AAPL $QQQ http://t.co/3G5ssjVVoH
The Stock Professor
28 Jan 15 00:47:19
BUZZ-ARM Holdings: tests 52-wk highs on Apple results: http://t.co/e29CljSlEe $AAPL $GOOG $PCLN $K
Stock Rocket
28 Jan 15 00:45:12
Our Penny Stock Alert On $QLTS Has Gained 34.62% In The Past 2 Days! Special Update: http://t.co/SK1yaqFkM1 $DPM $FRAK $GOOG
Financial BUZZ Just-
28 Jan 15 00:43:58
Compare brokers to find the right one for you- US Tech Giants http://t.co/F3popBybWy $AAPL $GOOG $MSFT $FB $TWTR #spreadbetting #cfd
Artur Olsevskij
28 Jan 15 00:37:15
$AAPL does anyone know what about $GOOG? Will they will be good enough?
				
				
  +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.