Pandora Media Inc Turns Up the Music at CES 2017


Pandora Media Inc Turns Up the Music at CES 2017
  1. Pandora Media Inc Turns Up the Music at CES 2017
    fool.com
    Mike Herring spoke from the trade show last week, offering some insight into the company's…
    Finance

Pandora (NYSE:P) President and CFO Mike Herring spoke at the Citigroup Internet, Media, and Telecommunications Conference from CES in Las Vegas last week. He made it clear that the company will be U.S.-focused for the foreseeable future with goals of driving higher ad spend for its ad supported free music streaming service, upselling ad supported listeners to paid memberships, and cross-selling all listeners with tickets through its newly acquired asset, Ticketfly.

Pandora Ad Format

Image source: Pandora.

Selling more ads

Pandora spent $98.1 million or about 28% of its revenue on sales and marketing last quarter. That number is up nearly 60% from the same quarter in 2014 -- this growing spending is indicative of a business focused on boosting its revenue by selling ads on a local basis throughout the country. Today, Pandora reaps a total average ad load of $56.84 for every thousand hours of listening time on its ad supported product. Mike Herring was very clear in stating that the goal is to bring that number up to $80 per thousand hours by 2020. In fact, Pandora is already meeting that goal in approximately 35 of the top markets in the U.S. The rise of this number in the other 200 plus smaller markets will mean that in time, sales and marketing costs as a percentage of revenue should decrease.

One of the key ingredients Pandora is using to gain more advertisers is the psychographic data they have collected from each listener. Pandora data scientists have created 1,800 segments for its 78 million users that allow the company to optimize the ads for each listener, making them more effective for advertisers in the process.  

Pandora has also mastered the art of user engagement by having listeners give a thumbs up to songs they like. This data allows users to receive recommendations by channel type in a personalized radio format. Listeners have invested more than 75 billion thumbs up or down for songs, making Pandora something of a daily habit. And this habit is quite relevant to the company as it focuses on converting these listeners to paid subscribers. As Mike Herring described it, the premium subscriber product is not being built on one "big bang" event but rather the everyday habits of current listeners migrating to a higher level of service over a long period of time.

Pandora offers a different experience for its users

Pandora

Image source: Pandora analyst day presentation Oct. 25, 2016.

For $4.99 a month, a listener can choose to become a paying subscriber and skip as many songs as they like while also enjoying unlimited replays of their favorite tunes. Pandora has also built in a feature that allows the user to go into airplane mode and still listen to a portion of their individualized channels offline. This transition can occur automatically without user involvement if, as an example, a car radio playing Pandora were driven through a tunnel.

Pandora Premium is scheduled to be rolled out some time this quarter. This complete on demand format will be priced at approximately $9.99 per month and allows listeners to build completely customized playlists, in addition to taking all of their music offline.

The company intends to opportunistically upsell users through what they have labelled smart conversion. Pandora knows that of their current 78 million listeners, 20 million are paying another service f…

Tags: #Pandora
  1. Heather Rosenow Joins GES as Vice President, Client Relations

    Prnewswire.com - Finance
    01.19 / 19:13 prnewswire.com
    LAS VEGAS, Jan. 19, 2017 /PRNewswire/ -- GES, a global full-service provider for live events, is pleased to announce the addition of Heather Rosenow as vice president, client relations. Rosenow brings more than 20 years of industry experience in program strategy, tradeshow marketing and …
  2. Tyler Technologies Schedules Fourth Quarter and Year End 2016 Earnings Conference Call and Webcast

    Financialbuzz.com - Finance
    01.19 / 19:09 financialbuzz.com
    Tyler Technologies, Inc. (NYSE: TYL) will discuss its fourth quarter and year-end 2016 results during a conference call and webcast on Thursday, February 9, 2017. The teleconference begins at 10 a.m. EST and will be hosted by John S. Marr Jr., chairman and CEO, and Brian K. Miller, executive vice president and chief financial officer. The related press release will be issued after the market closes on Wednesday, February 8, 2017.Participants…
  3. Secular Shift in Interest Rates?

    Financialsense.com - Finance
    01.19 / 18:58 financialsense.com
    When the cost of money changes, everything changes. Interest rates affect every aspect of the financial universe. At the global level, they impact currency and trade flows between nations. At the national level, they affect the discounted... …
  4. Donald Trump, Betsy DeVos and School Choice

    Financialsense.com - Finance
    01.19 / 18:58 financialsense.com
    Donald Trump’s nominee for secretary of education, Michigan billionaire Betsy DeVos, was questioned on a range of education issues during her confirmation hearing this week. Central to the debate is her major role in supporting... …
  5. Twitter Storms and Trade Wars

    Financialsense.com - Finance
    01.19 / 18:57 financialsense.com
    The number of followers on US President Donald Trump’s Twitter page is increasing at an exponential rate, reaching 20.3-million this week, and up from around 19.9-million just a few weeks ago. Mr Trump’s frequent use of... …
  6. Tesla’s Elon Musk praises report that closed Autopilot investigation

    Vse.marketwatch.com - Finance
    01.19 / 18:48 vse.marketwatch.com
    Federal regulators close investigation on May fatal crash involving a Model S on Autopilot, Tesla’s suite of advanced driver assistance systems. No recall is to be issued.  …
  7. California home price ends year on high note while sales moderate in December; housing market posts solid performance in

    Prnewswire.com - Finance
    01.19 / 18:36 prnewswire.com
    LOS ANGELES, Jan. 19, 2017 /PRNewswire-USNewswire/ -- Despite strong headwinds of tight housing supplies and an affordability squeeze throughout much of 2016, California's housing market ended the year on a positive note, posting a moderate sales pace and home price increases in December, the …
  8. Hong Kong Racing: Hong Kong Classic Mile

    Livetradingnews.com - Finance
    01.19 / 18:33 livetradingnews.com
    By David Morgan at the HKJC Pakistan Star the local celebrity gelding by Sharmadal and the John Moore stable’s Rapper Dragon, Beauty Generation and Eagle Way will carry the heaviest weight of expectation into Sunday’s (22 January) Hong Kong Classic Mile, but just off-radar, Nash Rawiller is anticipating something exciting from Aussie Seasons Bloom. “I’ve […] The post Hong Kong Racing: Hong Kong Classic Mile appeared first on Live Trading News…
  9. Washington unemployment rate drops to 5.2 percent in December

    O.seattletimes.com - Finance
    01.19 / 18:19 o.seattletimes.com
    Washington’s unemployment rate inched lower in December, driven by gains in leisure and hospitality, information and retail trade s…
  10. Concho Resources Inc. (CXO) to Post FY2016 Earnings of $0.45 Per Share, Jefferies Group Forecasts

    Americanbankingnews.com - Finance
    01.19 / 18:13 americanbankingnews.com
    Concho Resources Inc. (NYSE:CXO) – Analysts at Jefferies Group issued their FY2016 EPS estimates for shares of Concho Resources in a research note issued on Tuesday. Jefferies Group analyst M. Hsu expects that the firm will post earnings per share of $0.45 for the year. Jefferies Group has a “Hold” rating and a $149.00 price…
  11. Analysts Issue Forecasts for Carrizo Oil & Gas Inc.’s FY2016 Earnings (CRZO)

    Americanbankingnews.com - Finance
    01.19 / 18:12 americanbankingnews.com
    Carrizo Oil & Gas Inc. (NASDAQ:CRZO) – Jefferies Group issued their FY2016 earnings per share estimates for shares of Carrizo Oil & Gas in a note issued to investors on Tuesday. Jefferies Group analyst M. Hsu anticipates that the brokerage will earn $1.03 per share for the year. Jefferies Group has a “Buy” rating and…
  12. Market Extra: Trump inauguration set to unleash cascade of stock-market anxiety

    Vse.marketwatch.com - Finance
    01.19 / 18:11 vse.marketwatch.com
    The day of reckoning for the Wall Street is nearly upon us. Donald Trump is set to be sworn in as leader of the free world and the level of consternation in the market is palpable. …
  13. Will NVIDIA Corporation's Smart Home Plans Take Off?

    Fool.com - Headlines
    01.19 / 18:10 fool.com
    Will the chipmaker’s tiny smart speaker be overshadowed by similar devices from Amazon and G…
  14. Tesla Motors Upgraded: 3 Things You Need to Know

    Fool.com - Headlines
    01.19 / 18:09 fool.com
    Morgan Stanley puts a price tag on Tesla shares: About $0.50 per 1,000 cars…
  15. Universal Music Group And Alex Da Kid Sign Multi-Faceted Agreement

    Prnewswire.com - Finance
    01.19 / 18:00 prnewswire.com
    SANTA MONICA, Calif., Jan. 19, 2017 /PRNewswire/ -- Universal Music Group (UMG), the world leader in music-based entertainment, today announced a multi-faceted agreement with Emmy-winning, critically acclaimed music producer and CEO/Founder of KIDinaKORNER, Alex Da Kid. Under the agreement,…
  16. NX Prenatal Appoints Leading Experts to Medical/Clinical Advisory Board

    Prnewswire.com - Finance
    01.19 / 17:59 prnewswire.com
    LOUISVILLE, Ky. and HOUSTON, Jan. 19, 2017 /PRNewswire/ -- NX Prenatal Inc. ("NX Prenatal") today announced the formation of its Medical/Clinical Advisory Board.  This new board brings together leading clinicians and industry veterans who enhance the range and depth of expertise of the …
  17. Everspin Names Patrick Patla Senior Vice President of Marketing

    Financialbuzz.com - Finance
    01.19 / 17:55 financialbuzz.com
    Everspin Technologies, Inc., the world's leading developer and manufacturer of discrete and embedded MRAM, today announced the appointment of Patrick Patla as Senior Vice President of Marketing. Mr. Patla will be responsible for driving the strategic direction for Everspin and leading the marketing effort to drive growth across the business. He will establish Everspin product roadmaps and manage the development and execution of global marketing…
  18. AG Healy Speaks Out Against Trump EPA Admin Pick

    Bankerandtradesman.com - Finance
    01.19 / 17:44 bankerandtradesman.com
    Massachusetts Attorney General Maura Healey has joined a coalition of nine attorneys general in urging the Senate Environment and Public Works Committee to oppose the confirmation of Oklahoma Attorney General Scott Pruitt as Administrator of the Environmental Protection Agency (EPA), calling him “manifestly unsuited for the r…
  19. Brookline Inside Trader Sentenced To Prison, Fined For Million-Dollar Scheme

    Bankerandtradesman.com - Finance
    01.19 / 17:43 bankerandtradesman.com
    A Brookline man was sentenced yesterday for his role in a million-dollar insider trading scheme in 2013 during the lead up to the acquisition of Cooper Tire & Rubber Co. by India-based Apollo…
  20. Why Rent-A-Center, Inc. Stock Tumbled Today

    Fool.com - Headlines
    01.19 / 17:32 fool.com
    The rent-to-own chain posted a disappointing preliminary earnings report as it continues to struggle with technical…