Pandora Media Inc. is the provider of Pandora Internet Radio; an automated music recommendation service available in the U.S. Pandora Internet Radio creates playlists of musical selections that are similar to selections suggested by its users. By providing positive or negative feedback of songs, future playlists can be created based on these ratings. (Wikipedia, 2011)
Users of Pandora Internet Radio can also purchase songs and albums from various online retailers. Pandora Internet Radio is based on the Music Genome Project, which was introduced by Pandora Media Inc. The Music Genome Project is a sophisticated method of chronologizing music based on many factors to include syncopation, tonality, harmonies, instruments, etc. Pandora’s media player is based on OpenLaszlo; and open source platform used to create web-delivered applications that combine the rich user interface capabilities of desktop client software with the universally accessible features of web-based applications. Pandora can also be accessed through stand-alone players (i.e. Blu-ray players, televisions, table-top deices, digital media players home theater systems), mobile devices (i.e. Android, Blackberry, iPhone, iPad, Palm) and automobiles (i.e. BMW, Buick, Chevrolet, Ford, GMC, Mercedes-Benz, Mini, Scion, Toyota). Pandora’s service offers two plans; one being a free subscription supported by advertisements and another paid unlimited monthly subscription. (Mangalindan, 2011) Since it’s inception, Pandora Media Inc, has shown great growth. On February 11, 2001, the company officially filled with the SED for a $110 million IPO. Pandora trades on the NYSE using the symbol “P”. Their current stock price is $14.27 per share. During fiscal year 2011, Pandora reported $138 million in revenue. A major business line of Pandora Media, Inc. is in advertising. Pandora’s advertising products allow advertisers to pinpoint a particular market segment and consumer by talking into account factors such as age, gender, zip code and musical interests. Pandora incorporates display adds on it’s interface to maximizes exposure to it’s intended market segment. These display ads include banner ads tailored to a listener’s interaction. Audio advertising is another product that Pandora delivers through ads delivered as interludes between songs. Video advertising is also seen through in-banner click-initiated videos that automatically play while a listener is changing stations or skipping songs. Pandora also provides mobile advertising via standard banner ads displayed in the Pandora app. Mobile advertisers can also crate station playlists specifically for their branded products. The company builds and maintains the Pandora app for supported mobile devices. (Bloomberg, 2011) Competition is fierce in the radio industry and Pandora Internet Radio has many rivals. Pandora must compete with radio providers, such as CBS, Clear Channel, and satellite radio providers such as Sirius XM. (Spears, 2011) Pandora also faces competition from online radio provides, such as iheartradio, Last.fm, and Slacker Personal Radio. The company also faces completion from other media content providers such as Apple’s iTunes Store, Rhapsody, and Amazon. Pandora is also in completion with other Internet advertising and marketing outlets such as Internet portals, search engine companies and social media sites. The company also competes with traditional media sources in television and print. As seen, the use of revolutionary technologies has lead Pandora to the forefront as a pioneer of Internet radio. A major breakthrough was when Pandora introduced the Music Genome Project, which, it claims is the most sophisticated taxonomy of musical information ever collected. The founders of The Music Genome Project were Will Glaser and Tim Westergren and they began in 1999. The aim of the Music Genome Project was to capture the essence of music at the fundamental level. It took...
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