Threat of new entrants - MediumEntering the internet radio industry is easy because of new technology innovations but costly due to royalties and preferential treatment if it emerges from a terrestrial radio broadcaster.End users can have low switching costsAdvertisers that pay for ad timePower: medium, advertisers have little costs switching to other radio mediums but still pay increasingly more for time slots with Pandora Bargaining power of buyers - 2 types of buyersSubscribers that pay for no advertisementsPower: high, subscription only account for a small amount of Pandora’s income but users can still consume its product (music streaming) for free. Talking how their discounts on royalties expire this year. Make a side comment about Environment not being applicable.Many of the laws are very old, and were not created for the digital age.Population demographics:Age: Primarily under 18 and 18-24 some 24-34Location: Mostly listed to in car and work locationsLatino listeners make up 25% of Pandora’s listeners.Other companies who have tried to avoid paying the royalties, such as grooveshark, have gone bankrupt. Musicians already make less through streaming than any other medium, and some, such as Taylor Swift, have pulled their music from streaming services. Pandora needs to incentivize musicians to keep creating content for them. I do want to point out that that lobbying to lower licensing rates is a catch 22. Finally, they’re lobbying to lower licensing rates, arguing that they are bad for their business model. They also increased the cost of their paid service from 3.99 a month to 4.99 a month. So, what is their current strategy? Well, they’ve restricted how many hours per month free users can listen.Furthermore, Pandora and other streaming services have been under fire for years for not adequately compensating artists for their content. Pandora is even currently getting a discount on the royalties it pays, but that discount ends this year. We don’t know what radio stations pay, but if you think about each individual radio station and the music they play, it’s probably a lot less than any streaming service. Essentially, the more control you have over the music you listen to, the more licenses you have to pay. First off, Pandora is known as non-interactive steaming: which means you have very little control over what music is played.So, before I get to Pandora’s current strategy, let me tell you what their problem is: they’re losing money.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |