Pandora Radio: Fire Unprofitable Customers? Essays
Pandora’s Music Genome Project offers a unique value proposition in that it provides users with their preferred genre of music based on a single input. They have a large collection of songs in their database categorized into 65 million stations. Users are able to pick multiple genres or create ‘listening stations’ based on musical style, artist, song or composer. This ‘hands-free’ or minimal-interaction listening service was an innovative idea and offered a distinctive listening experience to the user—a service provided by none other.
• Subscription Based:
Pandora’s initial strategy was to create a revenue stream by offering 10 free listening hours followed by a monthly fee of …show more content…
Pandora faces competition from both traditional radio and other online services, such as iTunes, Spotify, MOG, and Rhapsody. Pandora founder Tim Westergren recently stated that he does not see iTunes (AAPL) or Spotify as competitors to Pandora, for they are both subscription services (for the record, iTunes is not a subscription service, but that is how Westergren worded it). In fact, many Pandora users hear a song on the service and go to iTunes to buy it. There is no