Pandora Radio

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Pandora Radio

Pandora Radio is a very popular Internet radio broadcaster that allows users to create profiles and create custom stations by entering their favorite songs or artists into their user profile. Pandora then locates songs that are rhythmically and artistically similar, thus creating a radio station fine-tuned to the users taste. Unlike music search engines, such as Spotify, Pandora did not play any one song on demand but played songs based on what users liked and disliked using a ‘thumbs up’ and ‘thumbs down’ feature. Pandora uses over 400 different musical attributes when selecting the next song played on a users station. The site features two subscription plans: a free subscription supported by advertisements, and a fee-based subscription without ads. Since its inception, Pandora has introduced mobile apps for several smartphones including Apple, Blackberry and Android. Pandora Radio is currently exclusively available in the US.

The Pandora Radio segmentation strategy is ‘one product with multiple segments’. Anyone with a smartphone and/or access to the Internet can access Pandora Radio. The user is in between the ages of 13 and 90 with a ‘sweet spot’ demographic of 18-34. The customer seeks to listen to music seamlessly and discover new music in the process. The focus of the brand is definitely on an individual who listens to close to 8 hours of music a day. They have an occupation that requires a considerable amount of deskwork, whether that is an office worker or a student. There are two groups; the people who will buy into the fee-based subscription and the people who will utilize the 10 free hours a day with the free subscription supported by advertisements. As an estimate, I would say that the consumer base is divided 70/30 in favor free subscription users.

Pandora Radio is positioned in a way that it is accessible to all. The customer is a person who listens to about 8 hours of music a day, and enjoys listening to old favorites and...
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