Needham's Laura Martin is taking Pandora's (P +17.6%) FQ4 ad rate declines in stride, arguing...

Needham's Laura Martin is taking Pandora's (P +17.6%) FQ4 ad rate declines in stride, arguing the quarter is a seasonally weak one for ad prices and that this year's drops were moderate. But she is concerned about Joe Kennedy's planned departure, given his pivotal role in saving Pandora from the brink and turning it into a $430M/year business. Wedbush's Michael Pachter thinks Kennedy's replacement should have a strong radio sales background. "They don’t need a product development guy ... They need a chief revenue officer." (CC transcript) (more)

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  • DIgitalMediaView
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    The bizarre timing and awkward circumstances of Kennedy’s exit beg speculation. How often do CEOs reporting earnings that excite investors use the occasion to announce they’re leaving, but without any specific explanation or any replacement planning underway whatsoever?


    Is Kennedy being scape-goated for the Internet Radio Fairness Act fiasco? There's a hint of speculation in the conclusion of a Verge article on Kennedy's departure, suggesting that expending so much of the company’s focus on the botched attempt to push for legislative rate relief contributed: "Kennedy and Pandora were as well-known for their lobbying efforts as for internet radio. But under Kennedy, Pandora's attempts to convince Congress that webcasters need a reduction in the royalties they pay for music had largely flopped. Pandora has long complained that the company is burdened by the high costs of music. Kennedy argued that it was imperative to the company's financial health that legislation known as the Internet Radio Fairness Act (IRFA) be passed. Last November, a House subcommittee held a hearing on IRFA, with Kennedy among those who testified. It quickly became evident that Pandora and the other IRFA supporters hadn't come close to enlisting enough support to get the bill passed. Some lawmakers joked that Pandora's bill should be called the 'Unfairness Act' or the 'Paycheck Reduction Act.'"
    8 Mar 2013, 08:07 PM Reply Like
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