Focus on the Real News in Pandora Earnings

• Report this Comment On March 08, 2013, at 5:26 PM, 67vair wrote:

  Pandora has never made money. That's the bottom line.

• Report this Comment On March 09, 2013, at 6:17 AM, zukerman wrote:

  I think it very convenient to compare Sirius with Pandora when you cherry pick items from the balance sheet. How about the need to improve your service to attract new subs and retain the ones you currently have? they have 88 million in cash so they wont be going bk anytime soon? It would seem many like yourself would like us to concentrate on improving fundamentals which to me would be very short term and short sighted. Lets say Pandora wanted to be a music only service, how would you improve your service to justify a dollar per/mo. increase when your having to cap listening to keep costs down? I liken this move to Walmart closing on Sunday because they want to save on labor. Instead of improving to keep listeners they lessen the enjoyment by adding just one more loop to jump through. Instead of having their own delivery system they are forever burdened with contract negotiations with those that carry their signal. They make their service more complicated when after 40 hours/mo. you have to pay more to listen to what used to be free. I would also like to point out where you see similarities I see a stark difference in the two services on who is listening. The disposable income between listeners will make any price hike much more difficult. Starbucks customers probably wouldn't care if you served them less ounces of their favorite coffee for the same price because they aren't concerned what it costs, however, if you were to take away the quality you'd have a riot. Pandora has been around for more than a decade and they are still trying to tweak their model and their CEO knows it's time to leave on a high note. Next year royalty rates rise again and then what, we start the process of achieving breakeven all over again? This whole freemium model was doomed from the start and will always be a dollar store service. Sirius did well during bad times because their subs had the cash and didn't care about the increase in costs, not so with Pandora. So the search begins anew for a new snake oil salesman to preach the fortunes to those that would bet on a failed model with an improving balance sheet, this shouldn't be difficult in today's market. Listening hours aren't the only thing that is capped, how about an article on why you think their profit isn't capped as well? When and only when Pandora attempts to compete with a variety of content will I listen to such rubbish on comparisons. BTW baseball will cost 120 million a year which is more then they have in cash. Pandora is a great service that millions love to listen to, but it will never be the cash cow that you imply it will be.

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