Pandora is an internet radio service that uses the Music Genome Project to create personalized stations for users based on songs they select. It has over 2.5 million subscribers aged 18-49, most of whom are Caucasian males. Pandora's strengths include its proprietary technology and large music database, while weaknesses include lack of control over playlists and commercials. It faces threats from larger competitors but opportunities to expand offerings and license more music.

2. CLICK ANALYSIS
Tim Westergren, Founder
Pandora differs from other Internet radio sites by relying on a method
known as the Music Genome Project. Unlike most music sites that focus on
genre, Pandora has no concept of genre, user connections or ratings.
(Layton, J., 2011) A user can create a personalized radio station and based
on songs selected, the Pandora technology plays other songs that have
similar musical traits.
Westergren spent ten years playing Keyboards as part of band and traveled
most of the time.
Pandora fulfills a users desire and enhances the experience of listening to
music.
Pandora has more than 2.5 million subscribers that are between 18 and 49
years of age, 70% of listeners are Caucasian, 51% are males as compared
to 49% females.

3. SWOT ANALYSIS
Strengths Weaknesses
Proprietary Technology User Can’t Control Play List
Service Free of Charge Radio Stream Has Commercials
User Friendly Technology is New
Large Music Database Doesn’t Have All Licensing
Agreements
Opportunities Threats
Introduce Subscription Fee Larger Radio Stations Can Compete
Expand To Offer Live Performances New Stations
Include Unsigned Bands Music Keeping Audience Stimulated
Have Radio Station For Bands

4. COMPETITOR ANALYSIS
iTunes
 Compatibility with iPod/iPhone/iPad (All #1 devices)
 Industry Leader
Rhapsody
 streaming on-demand music subscription service to offer unlimited access to a large
library of digital music for a flat monthly fee
 helps organize music collections, and sync them in MP3
Sirius
 Music channels are presented without commercials
 all channels are free from FCC content regulation, thus songs are played unedited
for language, and talk programs may feature explicit content

5. TOP 3 PROBLEMS
Free Music
Focused Playlist
Accessibility

6. TOP 3 SOLUTIONS
Pandora offers various packaged with which you can listen to their
playlists. One of which is Free and gives listeners the ability to
tune in to their favorite songs free of charge.
Pandora offers listeners the ability to choose their style of music
and to make channels based on the style and mood you are in
that day.
Pandora can be accessed at your office, at home, on your phone.
Anywhere you can access the internet you have Pandora.

7. Business Model Canvas
KP Key Partners KA Key Activities VP Value CR Customer CS Customer
Offers free internet Proposition Relationships Segments
Advertisers and radio, based on
genre after you
Customers Pandora Radio
acquires its
Pandora Radio’s
target audience is
Premium input a band, song, choose to use customers mostly by huge. They reach
subscription or genre Pandora Radio word of mouth. out to listeners that
holders Because of its huge old enough to use
because of its name, people know the internet, all the
intelligence, what its all about. way to people who
ease of use, Their customer may not know how
KR Key Resources service is exquisite to use because
and that’s its which allows the they’re older. They
Joe Kennedy-
CEO/President free. The company to hold try to reach
Tim Westergren- premium users onto its customer everyone, because
CSO/Founder base anyone can benefit
Tom Conrad-CTO/Exec. gain access to from a radio that
VP of Product no ad’s and chooses your music
great choices CH Channels
Steve Cakebread-CFO by
John Trimble-CRO
Delida Costin-Gen. Pandora is strictly recommendations.
Counsel for a low price. through the
Jessica Steel-Exec. VP of internet, however
Bussiness/Corporate newer radios that
Development have an internet
Simon Fleming-CMO connection, can use
Peter Ekman-VP of HR
The board also consists Pandora as well.
of genius venture
capitalists, investment
bankers, and
businessmen.
C$ Cost Structure R$ Revenue Streams
Pandora’s main cost are royalties that must be paid to Pandora charges for a premium account.$36 per year
the musicians, however a new agreement last month for no ad’s, high quality audio, desktop app, five-hour
was met to only cap listeners after 320 free hours per time out period. Also advertising on Pandora’s radio is
month. Servers and personnel are a large cost for
Pandora as well. a their main revenue stream.

8. INDUSTRY IMPACT
Pandora Radio revolutionized internet radio by creating free
content, that is based off your recommendation.
Pandora changed royalty agreements to give users the
access to cheaper or free listening content

9. ALTERNATIVE BUSINESS MODELS
Pandora could allow users create customized stations.
Allow more skips
Allow for international use
Get licensing agreements
Develop mobile technology usability

10. REFERENCES
Quantcast -http://www.quantcast.com/pandora.com
Business Innovation Factory -
http://businessinnovationfactory.com/iss/innovators/tim-westergren
Billboard.biz - http://www.billboard.biz/bbbiz/industry/digital-and-
mobile/pandora-s-tim-westergren-talks-with-billboard-1005237292.story
McBride, S., March 11, 2010. The Wall Street Journal: Pandora’s Radio Head -
http://magazine.wsj.com/hunter/rebel-yell/radio-head/
Layton, J., 2011, How Stuff Works: How Pandora Radio Works -
http://computer.howstuffworks.com/internet/basics/pandora.htm
pandora.com/corporate/management
pandora.com/corporate/board
seekingalpha.com/article/262294-pandora-cranks-up-the-growth-machine-
but-is-it-sustainable
computer.howstuffworks.com/internet/basics/pandora.htm
blog.eloqua.com/10-fast-facts-pandora/