Profile: Pandora Media Inc (P)

P on New York Consolidated

26.47USD
11 Jul 2014
Price Change (% chg)

$0.31 (+1.18%)
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Volume
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Pandora Media, Inc. (Pandora), incorporated in January 2000, is an Internet radio in the United States. As of January 31, 2012, it had over 125 million registered users. The Music Genome Project and its playlist generating algorithms predict listener music preferences, play music content suited to the tastes of each individual listener and introduce listeners to music they will love. When a listener enters a single song, artist or genre to start a station, a process it calls seeding, the Pandora service generates a station that plays music it think that listener will enjoy. It generates revenue from advertising. It also offers a subscription service to listeners. The Company’s service enables its listeners to create up to 100 personalized stations.

Pandora provides service through two models: Free Service and Pandora One. Free service is advertising-based and allows listeners access to its music and comedy catalogs and personalized playlist generating system for free across all of its delivery platforms. In September 2011 the Company increased the cap to 320 hours of listening per month. Listeners on other platforms have access to unlimited hours of free music and comedy. The Company’s listeners can subscribe to Pandora One for $36 a year or, on some devices, $4 per month. Pandora One works with all of its delivery platforms and eliminates all external advertising from any device used to access its service. Pandora One allows unlimited listening time and provides access to 192 kbps audio on supported devices. During the fiscal year ended January 31, 2012, subscription services and other revenue accounted for approximately 13% of its total revenue.

The Company distributes its service available through a variety of distribution channels. It has Pandora mobile device applications or apps for devices such as Android phones, Blackberry phones and the iPhone, and it distributes those mobile apps free to listeners via smartphone app stores. In addition, the Company have partnered with the makers of over 500 consumer electronics devices, including Alpine, Panasonic, Pioneer, Samsung and Sony. These third-party distribution partners incorporate its applications into aftermarket and factory-installed automobile entertainment consoles and other consumer electronics devices targeted for use in the home and on the go.

The Company generate revenue primarily from advertising. During the fiscal year ended January 31, 2012 advertising revenue accounted for approximately 87% of its total revenue. The Company offers a comprehensive suite of display, audio and video advertising products across its traditional computer, mobile and connected device platforms. Its advertising products allow both national and local advertisers to target and connect with listeners based on attributes including age, gender, zip code and content preferences, and it provides analytics for its advertisers detailing campaign performance.

The Company’s display products offer advertisers opportunities to maximize exposure to its listeners through its desktop and mobile service interfaces, which are divided between its tuner containing its player and now playing information, and the information space surrounding its tuner. Its display advertisements include industry standard banner advertisements of various sizes and placements depending on platform and listener interaction. Its audio advertising products allow custom audio messages to be delivered between songs during short ad interludes. Audio ads are available across all of its delivery platforms. On supported platforms, the audio ads can be accompanied by display ads to further enhance advertisers’ messages. The Company’s video advertising products allow delivery of branded messages to further engage listeners through in-banner click-initiated videos, videos that automatically play when a listener changes stations or skips a song and opt-in videos that pause the music and cover the tuner.

The Company’s banner advertising products for display on mobile devices include standard banner ads displayed on the Pandora app now-playing screen, welcome screen banners which are the first to display upon launch of the app, and other multi-functional banners of different shapes and sizes. Further, advertisers can create drag-and-drop stations where listeners select among branded icons and drag and drop the selected icon to automatically launch a station. The Company has incorporated media touch screen initiated functionality, or tap to technology, to enhance connections between mobile listeners and advertisers. Tap-to functionality allows mobile listeners to expand banner ads, launch videos, receive advertiser e-mails, dial advertiser phone numbers, download applications and access links to advertiser Websites, offering increased listener and advertiser engagement.

The Company’s display, audio and video advertising products can be designed and modified by it and advertisers to create advertising campaigns tailored across all of delivery platforms to fit specific advertiser needs. Advertisers can create custom branded stations from its music library that can be accessed by its listeners, as well as engage listeners by allowing them to personalize the branded stations through listener-controlled variables.

The Company competes with Clear Channel, CBS, Sirius XM, Apple’s iTunes Music Store, RDIO, Rhapsody, Spotify, Amazon, Hulu, VEVO and YouTube.

Company Address

Pandora Media Inc

SUITE 1650, 2101 WEBSTER STREET
OAKLAND   CA   94612
P: +1510.4514100
F: +1510.4514286

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