2. • Advances in tech expands listeners options
• Expansion of bandwidth and wireless services
• Advances in smartphone tech mobilize the internet
• As consumer options grow, advertiser’s options grow
• Seamless in dash experience
3. US Monthly Internet Radio Listeners, 2010-2016
93.1
112.9
132.6
147.3
159.6
169.3
176.5
2010 2011 2012 2013 2014 2015 2016
30%
36.10%
41.90%
46.10%
49.50%
52%
53.70%
% of population
Source: eMarketer, March 2012,confirmed and republished Aug 2012
5. AM/FM Publishers Continue
Impressive Growth VS. Pure Play
7.11%
0.59%
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
7.00%
8.00%
AM/FM Streams Pure Play
January 2014 Average Active Sessions (AAS) Monday-Sunday 6a-Mid
6. P’s ad based strategy has been successful
• P has hired great radio
sales people
• With strong radio
client relationships
“We are targeting
radio ad dollars”
-Joe Kennedy
7. P’s ad based strategy has been successful
• Converted AAS to AQH
• Backend ease of
purchase
“We can offer SMB’s a better
return on investment in
terms of foot traffic & brand
awareness.”
- John Trimble
8. What Your Buyers Are Saying About “P”?
“Pandora provides
demographic
and geographic targeting”
“Easier to buy with a
conversion of AAS to AQH”
“Affordable and trackable”
“Pandora is the #1 station in
the Market”
“Good click through rates”
12. SWOT Analysis of Pandora
Strengths
Accessibility
Free
Limited Interruptions vs terrestrial
First to market in pure play space
Strong sales force
More format variety
More variety inside each format
Opportunities
Lower royalty fees and expensive
175M registered users
75M monthly active users
Improving registration accuracy
Ask mobile users for location
Weaknesses
Registration
Prompting
IP address tracking
Increased interruptions
Limited growth
Inaccurate self serving metrics
Limited playlist
Unsustainable business model
Increased competition
Limited skipping ability
Threats
Terrestrial radio push back
Increased competition in pure play
Inaccurate data on users
Elevated commercial load
Expensive overhead – as they grow so do their
expenses disproportionally
13. Registration
• Privacy Concerns = Flawed Reg. Data
• Almost 9 in 10 users provide false or
incomplete information
• This creates issues with demo, gender, zip
code, and qualitative accuracy
• Reliability
Source: Blue Ink 88% of people who registered on the internet provide false or incomplete information citing privacy issues.
14. Are You Still Listening?
• Prompting occurs 1x an
hour on desktop (20%
of users)
• Prompting rarely
occurs/never occurs on
a mobile device
• Inaccurate hours spent
• Gross impressions
delivery
15. Where are you?
• Desktop IP addresses can be INACCURATE
• Reliability of registration process IS
INACCURATE
• Users rarely change cell phone #’s or area
codes when they move
• Cell data is inaccurate
AT&T = NORTHERN CALIFORNIA
SPRINT = KANSAS CITY
VERIZON = SOUTHERN CALIFORNIA
• Cell number portability has made area
code irrelevant
16. P’s Users Frustration Grows
0% 10% 20% 30% 40% 50%
Not enough music discovery
Miss hearing people
Gets boring
Too predictable
Too many bad songs
No local information
Can't skip enough songs
Commercials are annoying
2014
2013
2012
Jacobs Tech Survey 10
19. Investors Beware
• Unsustainable business model
• Overall registered users are down
• Monthly user base has flattened
• Listener experience has worsened
• Limited playlist
• More competitors
• Royalties increasing
• User mobile data issues
