CLICK ANALYSIS

Tim Westergren, Founder

Pandora differs from other Internet radio sites by relying on a method known as the Music Genome Project. Unlike most music sites that focus on genre, Pandora has no concept of genre, user connections or ratings. (Layton, J., 2011) A user can create a personalized radio station and based on songs selected, the Pandora technology plays other songs that have similar musical traits.

Westergren spent ten years playing Keyboards as part of band and traveled most of the time.

Pandora fulfills a users desire and enhances the experience of listening to music.

Pandora has more than 2.5 million subscribers that are between 18 and 49 years of age, 70% of listeners are Caucasian, 51% are males as compared to 49% females.

SWOT ANALYSIS

Strengths

Proprietary TechnologyService Free of ChargeUser FriendlyLarge Music Database

Weaknesses

User Can’t Control Play ListRadio Stream Has CommercialsTechnology is NewDoesn’t Have All Licensing Agreements

Opportunities

Introduce Subscription FeeExpand To Offer Live PerformancesInclude Unsigned Bands MusicHave Radio Station For Bands

Threats

Larger Radio Stations Can CompeteNew StationsKeeping Audience Stimulated

COMPETITOR ANALYSIS

iTunes

Compatibility with iPod/iPhone/iPad (All #1 devices) Industry Leader

Rhapsody streaming on-demand music subscription service to offer unlimited access

to a large library of digital music for a flat monthly fee helps organize music collections, and sync them in MP3

Sirius Music channels are presented without commercials all channels are free from FCC content regulation, thus songs are played

unedited for language, and talk programs may feature explicit content

TOP 3 PROBLEMS

Free MusicFocused Playlist

Accessibility

TOP 3 SOLUTIONS

Pandora offers various packaged with which you can listen to their playlists. One of which is Free and gives listeners the ability to tune in to their favorite songs free of charge.

Pandora offers listeners the ability to choose their style of music and to make channels based on the style and mood you are in that day.

Pandora can be accessed at your office, at home, on your phone. Anywhere you can access the internet you have Pandora.

KP Key Partners

Advertisers andPremium subscription holders

KA Key ActivitiesOffers free internet radio, based on genre after you input a band, song, or genre

VP Value PropositionCustomers choose to use Pandora Radio because of its intelligence, ease of use, and that’s its free. The premium users gain access to no ad’s and great choices for a low price.

CR Customer RelationshipsPandora Radio acquires its customers mostly by word of mouth. Because of its huge name, people know what its all about. Their customer service is exquisite which allows the company to hold onto its customer base

CS Customer SegmentsPandora Radio’s target audience is huge. They reach out to listeners that old enough to use the internet, all the way to people who may not know how to use because they’re older. They try to reach everyone, because anyone can benefit from a radio that chooses your music by recommendations.

KR Key ResourcesJoe Kennedy-CEO/PresidentTim Westergren-CSO/FounderTom Conrad-CTO/Exec. VP of ProductSteve Cakebread-CFOJohn Trimble-CRODelida Costin-Gen. CounselJessica Steel-Exec. VP of Bussiness/Corporate DevelopmentSimon Fleming-CMOPeter Ekman-VP of HRThe board also consists of genius venture capitalists, investment bankers, and businessmen.

CH ChannelsPandora is strictly through the internet, however newer radios that have an internet connection, can use Pandora as well.C$ Cost Structure

Pandora’s main cost are royalties that must be paid to the musicians, however a new agreement last month was met to only cap listeners after 320 free hours per month. Servers and personnel are a large cost for Pandora as well.

R$ Revenue StreamsPandora charges for a premium account.$36 per year for no ad’s, high quality audio, desktop app, five-hour

time out period. Also advertising on Pandora’s radio is a their main revenue stream.

Business Model Canvas

INDUSTRY IMPACT

Pandora Radio revolutionized internet radio by creating free content, that is based off your recommendation.

Pandora changed royalty agreements to give users the access to cheaper or free listening content

ALTERNATIVE BUSINESS MODELS

Pandora could allow users create customized stations.

Allow more skips

Allow for international use

Get licensing agreements

Develop mobile technology usability

REFERENCES

Quantcast -http://www.quantcast.com/pandora.com

Business Innovation Factory - http://businessinnovationfactory.com/iss/innovators/tim-westergren

Billboard.biz - http://www.billboard.biz/bbbiz/industry/digital-and-mobile/pandora-s-tim-westergren-talks-with-billboard-1005237292.story

McBride, S., March 11, 2010. The Wall Street Journal: Pandora’s Radio Head - http://magazine.wsj.com/hunter/rebel-yell/radio-head/

Layton, J., 2011, How Stuff Works: How Pandora Radio Works - http://computer.howstuffworks.com/internet/basics/pandora.htm

pandora.com/corporate/management

pandora.com/corporate/boardseekingalpha.com/article/262294-pandora-cranks-up-the-growth-machine-but-is-it-sustainable

computer.howstuffworks.com/internet/basics/pandora.htmblog.eloqua.com/10-fast-facts-pandora/