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Thread: How can you justify the riches of internet radio?

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    MUSCLE13 is offline

    How can you justify the riches of internet radio?

    I want to see you justify the riches of internet radio concerning this matter -

    Excerpt -

    This offers the first public look at the company's finances -- and Pandora isn't yet profitable. The popular site posted a net loss of $328,000 on revenue of $90.1 million in the first nine months of its most recent fiscal year. In the fiscal year ended Jan. 31, 2010, it lost $16.8 million on sales of $55.2 million.

    Its biggest expense is the royalties it pays for the music it streams. As Pandora's audience grows, so do those costs, which reached $45.4 million in the first nine months of 2010. That is twice what Pandora spent on them in the same period a year earlier.

    Now we all know per song royalty rates are going up every year and we also know that they will have to be renegotiated in 2015.

    But besides royalty and streaming costs, if Pandora isn't making money with 80 million registered users how will they make money when everybody and their grandmother is putting out personalized radio apps on smartphones in the next few years including competition from Sirius with 2.0?

    You keep posting that internet radio is where Sirius should concentrate in order to grow its business and make the big bucks, when internet radio hasn't made money ever, even for Pandora with 80 million registered users.


    PS - I do believe Pandora is strategically IPOing before Sirius XM 2.0 comes out and effects their business negatively.
    Last edited by MUSCLE13; 02-12-2011 at 09:09 AM.

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