Anyone listen to the DBL Annual Investor Meeting?
Interesting information about future International Expansion. Talked about negations, licensing, rights, royalties and when the "right" conditions are in place, “Pandora is prepared to move very quickly”
Pandora's business plan is simple...offer free services and incur massive expenses in the process. And sorry to tell you, but I've forgotten more about business plans and financial analysis than you'll EVER know. All anyone has to do is read both of our posts and they can easily discern who knows what they're talking about. You're only fooling yourself that you have a clue.
“Pandora said it has reached agreements for Australia and New Zealand with PPNZ Music Licensing, which represents recording artists and record companies, and APRA|AMCOS, which represents songwriters, composers and publishers”
The “right” conditions are in place, which means low royalties. $$$$$$$$$$$$$$$$$$$$$$$$$$$$$
I am so glad that I shorted P on 11.5 again since I partly covered my short position on $9.9.
I think P will go down under $5 without any chance turning around again. P is dead, period. I will stay my short position.
Spotify offers listeners fully 16 times more songs to choose from than Pandora and
Spotify has content deals with Sony Corp. (6758)’s Sony Music, Vivendi SA (VIV)’s Universal Music, EMI Group (EMIS) and Warner Music Group. Under those agreements, artists, record companies and publishers receive a cut of ad sales and subscriber fees. Pandora doesn’t have agreements with record companies. Without legislation in other countries, Pandora has been unable to expand outside of the U.S.
Pandora playing in a crowded field without advantages.
if you like Pandora, you may very well like Spotify just as much.
A few notes:
Like Pandora and every other Web radio offering (including Clear Channel’s iHeartRadio and the newly popular Songza), Spotify’s radio service is “DMCA compliant,” which means that Spotify doesn’t need permission from music owners in order to roll it out. That means you’ll be able to hear the Beatles and other streaming music service holdouts. [UPDATE: Spotify does have the ability to play music it hasn't licensed, but hasn't introduced it yet. So no Beatles for you, for now.]
But that also means the service comes with restrictions, like a limited ability to choose songs and skip past songs you don’t want to hear. And just like Pandora, the free service won’t work outside the U.S., because of licensing issues.
Because Spotify also has a paid music service, it can integrate the two in interesting ways for subscribers. For instance, paying subscribers can fast-forward through songs. They can also access auto-generated playlists of songs they’ve heard on the radio service, and pick and choose songs from there.
One other difference between the two services: Pandora programs music based on a complex algorithm based on songs’ musical “DNA.” Which means that if you tell Pandora you like the Ronettes’ “Be My Baby,” it will find other songs that feature “rock & roll roots,” “a subtle use of vocal harmony,” “acoustic rhythm piano,” etc. But Spotify says it is relying on the “social graph,” so it will find music that people who like the Ronettes also like. You may notice this, or not.
Web radio is free for Spotify’s users, but not for Spotify: It will have to pay music owners a set price for every song it streams, and that gets expensive. And those costs keep going up the more people use it. Which is why Pandora has yet to earn a profit.
Spotify says it will be able to defray its costs through the advertising business it has already established. But as Pandora has shown, selling mobile advertising for music services is a challenge.
Good question and I believe that estimate is overly conservative, as they usually are. The positive results of the last quarter clearly demonstrate accelerated increase in Mobile RPMs. This country is rapidly going “Mobile”. The quarter before last, we took I hit, because of the “explosion” in mobile use and lower Mobile RPMs vs. Desktop RPMs.