Pandora Has No Choice but to Rock the World

Watch stocks you care about

The single, easiest way to keep track of all the stocks that matter...

Your own personalized stock watchlist!

It's a 100% FREE Motley Fool service...

Click Here Now

Reports of slowing domestic growth won't mean that this will be the last you hear about Pandora Media (NYSE: P  ) .

The leading music streaming service -- serving up more than a billion hours of audio a month -- is expanding overseas.

Pandora introduced its customized playlists to music buffs in Australia and New Zealand late last month, and the rest of the world may get even easier to tackle. The historically stingy European Commission is proposing this morning to ease the music licensing rules that make it difficult for digital stores and services to roll into Europe.

Just a couple of weeks ago, Pandora was strictly a stateside experience. It may be packing its guitars and Marshall stacks to go on a world tour before long.

Cynics will argue that Pandora needs to be a traveling musician because business is slowing closer to home. The music discovery service revealed yesterday that it served up 1.08 billion hours of music to its users last month. That may be a healthy 77% improvement over June of last year, but this is actually a slight sequential dip compared to the 1.1 billion hours dished out in May. There are now 54.5 million active users, and that's 51% ahead of where it was a year ago, but it's not much of a boost from the 53.3 million active users on its rolls a month earlier.

It also doesn't bode well that active users inched higher sequentially, but listening time moved lower. Are consumers gradually tiring of Pandora or is this merely a seasonal blip? Even if it is a summertime thing, skeptics will be correct in pointing out that listening grew sequentially between May and June of last year.


Pandora also won't be alone if easing musical licenses in Europe offers the service an opportunity to jam overseas. The move would largely benefit Apple's (Nasdaq: AAPL  ) iTunes and streaming rival Spotify that already have a beefy presence in Europe.

The move would also open the door for Sirius XM Radio (Nasdaq: SIRI  ) . It's limited to its current market given the range of its satellites, but it's another market entirely for its streaming service if licensing deals are easier to make uniform across Europe.

It makes perfect sense for Pandora to be eyeing the global opportunities, but before it plugs in its guitars it better realize that the stage is getting pretty crowded with rivals that have the same idea.

You say you want a revolution
Streaming is a strong radio revolution, but it's not the only movement that will make serious money for investors. A free report details three stocks to own for a new industrial revolution. The report won't be around forever, so check it out now.

The Fool owns shares of Apple. Motley Fool newsletter services have recommended buying shares of Apple. Motley Fool newsletter services have recommended creating a bull call spread position in Apple. The Motley Fool has a disclosure policy. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. Try any of our Foolish newsletter services free for 30 days.

Longtime Fool contributor Rick Munarriz calls them as he sees them. He does not own shares in any of the stocks in this story. Rick is also part of the Rule Breakers newsletter research team, seeking out tomorrow's ultimate growth stocks a day early.

Read/Post Comments (1) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Add your comment.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 1939777, ~/Articles/ArticleHandler.aspx, 10/25/2016 7:03:28 PM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated Moments ago Sponsored by:
DOW 18,169.27 -53.76 -0.30%
S&P 500 2,143.16 -8.17 -0.38%
NASD 5,283.40 -26.43 -0.50%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

10/25/2016 4:00 PM
P $12.18 Down -0.62 -4.84%
Pandora Media CAPS Rating: **
AAPL $118.25 Up +0.60 +0.51%
Apple CAPS Rating: ****
SIRI $4.19 Up +0.01 +0.24%
Sirius XM Radio CAPS Rating: **