Seeking Alpha

August audience metrics lift Pandora

  • Pandora's (P +1.9%) August listening hours totaled 1.35B, +5% M/M and +16% Y/Y (though only flat with May). (PR)
  • Likewise, Pandora's share of U.S. radio listening rose to 7.46%. That's still below February's 8.48% (achieved before Pandora installed a 40 hour/month mobile listening cap for free users), but above July's 7.08% and June's 7.04%.
  • Active listeners +1% M/M and +28% Y/Y to 72.1M.
  • Pandora removed its mobile listening cap on Sep. 1, ahead of an iTunes Radio launch expected this month. That should provide a boost to September figures.
Comments (3)
  • dgulick
    , contributor
    Comments (1392) | Send Message
     
    Very solid numbers. (Looks almost as if the 40 hr listening cap was removed last month.)

     

    It will be interesting to see what impact iTunes radio will have next month, half of Pandora listening is on an iDevice. I suspect many will try it, decide it is identical (or harder to use, depending on how closely they copied Pandora's functionality) or nothing new and switch back. Pandora will be stickier than many believe, people will stay for their stations/thumbsed-up/down songs, better genome/song recommendations, less obnoxious ads, etc, perceived or otherwise (also, no one likes a plagiarist, e.g., Bing: a Google copy, Google+: a Facebook copy, Amazon Instant: a Netflix copy, etc).

     

    The true casualty of all of this will be terrestrial radio. SiriusXM will see their growth stall as well. Internet radio now represents 11% of US radio listening, up from 3% just 3 years ago. This trend may even accelerate as mobile broadband infrastructure gets built out.
    5 Sep 2013, 03:30 PM Reply Like
  • Desmodos
    , contributor
    Comments (54) | Send Message
     
    "half of Pandora listening is on an iDevice." -dgulick

     

    I agee with most of your comments except this part. Curious as to how you arrived at this estimate. From my observations (people I know that listen to Pandora), it seems rather unlikely Apple users account for half the listener base. Additionaly, when you factor in Pandora's pre-installation in many new vehicles, I would expect a significant amout of Pandora listners would not come from a smart phone at all.
    6 Sep 2013, 07:00 PM Reply Like
  • dgulick
    , contributor
    Comments (1392) | Send Message
     
    Desmodos,
    I tried, but yeah, I can't back that up, actually. It was a statistic that I got from SA contributor DigitalMediaView:

     

    "Apple is half P's mobile listening base..."
    http://bit.ly/17LH644

     

    I remember pressing him on it, and I think this was at least part of his reference:
    http://bit.ly/YT2PQd
    But there was more, because at the time I was satisfied, but I can't find it now.

     

    But also, he was saying it was half of *mobile* listening, which is not half of total listening as I stated, so I'm wrong as some of their *mobile* is on a *connected device*, and of course roughly ~20% is still on desktop.

     

    "I would expect a significant amount of Pandora listeners would not come from a smart phone at all."

     

    I agree, though perhaps *significant* is overstating it a bit as this is a very nascent market (only 2.5M of their 72M users), though it is growing very quickly. Also many of the auto solutions use your smartphone (via blue-tooth) for the mobile broadband (4G/LTE) connection, so even as the functionality is via the in-dash radio, it could still be argued that this was via an iDevice (Apple is pursuing the in-dash market as well, though Pandora has a significant lead).

     

    I would also believe that the amount of P listening on iDevices is in decline due to additional streaming options as you state, but also based purely on the increasing market-share of competitors in the smartphone market.

     

    Sorry for the confusion.
    9 Sep 2013, 01:48 PM Reply Like
DJIA (DIA) S&P 500 (SPY)
ETF Tools
Find the right ETFs for your portfolio:
Seeking Alpha's new ETF Hub
ETF Investment Guide:
Table of Contents | One Page Summary
Read about different ETF Asset Classes:
ETF Selector

Next headline on your portfolio:

|