True. It's a small part of that small segment. Even IF what he says is true, it is of minor concern. Looks like this dip sets up a chance to accumulate more.
I've been hearing more ads when I listen to it. That means rev/profits should be up. Interestingly, some were for local concerts. That's a good market for them since they know the music you like and the venues close to you. Still, plenty of room for more ads. You can still hear three songs between ads sometimes.
And I hear that space aliens have secretly invaded Earth and have a hidden military base under the Pacific Ocean, too.
What's the rate, about 13 cents per hour since the ruling? That would be around $22 by the weekend? Interesting development. I can see that. I think that would be more like around $30 by the end of the month. You may be a little "high."
Apple is paying Beats $27,000 per listener with that $3 billion deal. Pandora market cap is $68 per listener to put into perspective. Pandora's market cap per registered user (potential listener) is around $20. You can't make money in advertising paying $27,000 per listener. The technology isn't worth anywhere near $3 billion. Is that new Apple CEO still wasting Apple shareholder dollars on global warming? This kind of mismanagement of capital seems to be a trend at Apple, lately.
I think those emphasizing the pay model are missing the boat. That's why they have so few listeners. Beats, Spotify, Apple.. none of them have been able to approach even remotely Pandora's market penetration. That is because people are used to hearing radio for "free." Pandora has the edge in that they are already building out their advertising force. Right now they are depending upon third parties to sell ads for them quite a bit, but as their sales force builds up its regular customers they will be able to cut out the middle men and get those easy, highly profitable repeat sales. That is how you build an ad business. Apple has lots of money, but they are years behind in the ad sales game. They don't know anything about that market, either. They will find it is a very tough and brutal business. They will find that no one is interested in their little 200,000 Beats customer base the overpaid for. No, customers will be interested in reaching the 75 million who listen to Pandora instead.
Another point is that when they get full saturation of ads, which will be about 15 minutes per hour or more instead of the current one minute I'm experiencing in Dallas, that will be a 25% reduction in the number of songs played, reducing their costs by that amount. In addition, more ads will drive the consumer to the pay model. I studied advertising in college and worked in the ad industry briefly. (Got fascinated with computers back in the 1980's and did that the rest of my career.) I ran a successful business and retired at age 58. I could have easily retired at age 48. So, I know what I'm talking about. Trust me. You are not thinking this through.
I did not get to hear the conference. These are my own ideas. Glad to hear they are expressing what is unique about this company and are emphasizing that in their business plan.
What you aren't considering is that there are few ads on Pandora. The other day on my little jog I was listening for 51 minutes. I heard two very brief ads that combined could have not taken up more than a minute! They could multiply that by 15 and not lose a single customer, because guess what? The regular radio stations play even more ads than that! That is a huge potential for advertising sales. They are just now building up their sales force. It's not just a USA thing, either. They can branch out all over the world.
Another article on Motley Fool incorrectly states that the only way for Pandora to become profitable is to increase prices for ads and the pay service. No, they don't. That is a lie. They only have to sell more ads. Yesterday, in a 49 minute jog I heard three ads. Only three! Very short ads at that. I doubt all three took up a minute. They can and are selling more ads, but it takes time to build that business up. They are headed directly towards profitability soon and will continue to grow profits for a long time to come. Motley Fool didn't even consider the idea that they could increase the number of ads. That' show stupid their writers are.
No doubt other companies would like to buy Pandora, but Pandora can stand on it's own. Pandora is pretty much synonymous with internet radio. When people talk about listening to radio on their cell phones, they say they listen to Pandora. I don't think Apple can compete with that. More people listen to Pandora on Apple cell phones than they do anything else.
... read a PR release. They mix currencies in their calculations to the point that hardly any of their data is accurate on the summary quotes, analysts estimates, whatever.. who ever is reading the press releases and financial statements and is updating the statistical information is not very bright. They need to be fired. You see that #$%$ al over Yahoo! in the ADR's because the bozos can't understand the information handed to them. It's almost worthless to use their we site for ADR's and you sure don't want to run screens on their inaccurate data.
They have about a month, then they are playing with fire. Best to cover now and take what they can get.
It's doubtful any of that will happen because it has been settled on existing case law. The CAFC already made the clear in the Motorola case, and they don't seem to be interested in a new precedent. It's not that important or odd of a case to warrant an en banc hearing and certainly no law firm in America would embarrass itself by bothering the Supreme Court over it. LOL. Once the decision not to hear it is made, Apple will write a check.
Really, I think Microsoft is a more likely suitor. The same people who say Apple iRadio can compete with Pandora have admitted that the Pandora app is much easier to use and a better program for the listener to select what they want to hear. There really isn't any big competitive edge Apple has over Pandora other than its bank account. Pandora runs on Apple phones. As far as access to music goes, people are going to use what they have been using, and what is easiest, and that is Pandora. There are no plans to put Apple iRadio in cars like with Pandora, and Apple's market is extremely small compared to Pandora. Pandora has 72 million listeners, and that's a lot of momentum for Apple to overcome. With Pandora now installed in cars, that will be more momentum for Apple to overcome. It's highly doubtful that Apple can find much more than a shared space with Pandora, and that space will likely be small. Microsoft would probably like to trump Apple at least once. LOL.
Sentiment: Strong Buy