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Pandora mulling expansion into talk radio

  • "Music’s an important piece of radio listening in the car, but if there’s a place where spoken word is also equally, and more important really, it’s in the car," says Pandora (NYSE:P) CFO Michael Herring, explaining why the Web radio leader is thinking of adding talk radio to its offerings.
  • Pandora mentioned on its Q2 CC (transcript) it now has 7M unique users who activated Pandora via "native automotive integrations," up from 2.5M a year ago. However, automotive listening currently averages 6 hours/month, well below the 21.1 hours averaged by Pandora's 76.4M total active listeners.
  • Pandora was pressed by analysts about its soft June active listener growth (-1% M/M and +7.5% Y/Y) on its CC. While listener engagement remains strong - listeners hours rose 29% Y/Y in Q2 - concerns have grown that competition from Spotify, Apple, and others has hurt user growth. Talk radio could provide a way to expand Pandora's base.
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Comments (4)
  • manicdvln
    , contributor
    Comments (1296) | Send Message
     
    There are no expansion plans, Pandora management keep saying over 3 quarters now. They simply can't afford it.
    4 Aug 2014, 06:04 PM Reply Like
  • blake303
    , contributor
    Comments (90) | Send Message
     
    They can afford it. So can Spotify, Apple, and most other competitors.
    4 Aug 2014, 06:09 PM Reply Like
  • manicdvln
    , contributor
    Comments (1296) | Send Message
     
    What is Pandora going to do? Cut a talk show abruptly after 5 mins and force to listen to another random talk show? LOL

     

    Where is the revenue in this? Oh yeah...none.

     

    Adding content only works with subscription based revenue models, ads don't work. And Pandora doesn't have enough subs to cover the costs of adding such content.

     

    Another non-news hype.
    4 Aug 2014, 07:10 PM Reply Like
  • blake303
    , contributor
    Comments (90) | Send Message
     
    I agree that talk won't help P. But there is nothing keeping them from spending cash on it, if that's how they choose to waste it.
    4 Aug 2014, 07:15 PM Reply Like
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