Pandora to offer Subscrtion service "Ouch ?"

Well they don't compete with sat-rad and the content sucks because its just a juke-box.....but thats about to change

heres the link

i guess this could be moved to yesterdays thread, round two....follows

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Soon, Conrad said, the company will offer Pandora One, which will be subscription based.

Issues including royalties paid to artists remain an obstacle to Pandora’s success, Conrad admitted. However, he was optimistic that the company and the artists can adapt and resolve their differences.

Panelists noted that the music industry has reverted to what it was in the 1960s when many bands of musicians would settle for small pay just to get their tunes recorded and tour playing them.

However, most panelists agreed, the big music companies – as we have known them -- are about to die.

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Originally Posted by tim wallick

Well they dont compete with satrad and the content sucks because its just a juke-box.....but thats about to change

heres the link

i guess this coulb be moved to yesterdays thread, round two....follows

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Actually, I think this validates what we've been saying here. The 'free service' model isn't cutting it financially. They can't generate enough ad revenue either, so, they need to start charging for it. I posted an article from WSJ a few days ago which basically said internet ad business faced challenges now with more websites/web services out there than ad dollars can support. That's great news for S-XM. Pandora and Slacker can't compete for on air content with S-XM.

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Originally Posted by underway

Actually, I think this validates what we've been saying here. The 'free service' model isn't cutting it financially. They can't generate enough ad revenue either, so, they need to start charging for it. I posted an article from SJ a few days ago which basically said Internet ad business faced challenges now with more websites/web services out there than ad dollars can support. That's great news for S-XM. Pandora and Slacker can't compete for on air content with S-XM.

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its all about the content rights which you control directly going forward where leverage will be located for some business's others will be forced to pass on all the cost in and on-line environment and by adding more to the spot load. the cpm is still declining for the online sector while the overall on-line advertising is growing. all pluses for the nimble operators ..imho

Like i said before,SXM is leading the revolution of Sub based internet Radio..
The APP for I-Phone better be SEXY enough for young and old..
Malone and Maffei are responsible for this in MHO,they came on board and Nicemac went away,because they knew about 3.0 OS for I-Phone coming out.
Also remember,like Cable with a monopoly,we will raise prices as we see fit when we suck everyone in as a needy must have APP..

JI, was the timing of Malone around the time the nicemac was stopped? Interesting.


Don't forget in a year or two many more people will need to pay for sxm that renewed to avoid the March 11 internet fee.

Something I think even Charles and Tyler are forgetting is SXM offered internet radio free to subscribers. Sure, you needed an account...but your account for your car got you free SXM internet radio.

^^what im saying there is give credit to SXM, they are ahead of the curve, their internet was free before pandora and slacker. Now they are charging for it, as will pandora and slacker, except SXM content is better, hence, they are ahead of the curve.

and argue what you may, they could say their service is $15 and includes free internet, but they are being nice and allowing you to ala carte internet radio.

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Originally Posted by tim wallick

its all about the content rights which you control directly going forward where leverage will be located for some business's others will be forced to pass on all the cost in and on-line environment and by adding more to the spot load. the cpm is still declining for the online sector while the overall on-line advertising is growing. all pluses for the nimble operators ..imho

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Agreed....as usual...only the strong survive. But, the effect will be to reduce the number of websites with good content, because there won't be enough advertising $ to go around. Eventually, some type of equilibrium will be achieved. The sites with the most traffic will attact the ads, and the others won't. And this begs the question: where's the content going to come from to bring the traffic? In most cases, the content will have to be purchased by the web operator....Pandora, Slacker in this case. Will the ad revenue be sufficient to support paying for the content? I don't think so....because I don't think internet ads are bringing the bang for the buck to companies that are paying for the ads. I think that's why we're seeing a flurry of 'audio ads' and 'dancing/floating images' on the PC screen. People surfing the web aren't paying attention to the ads!

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Originally Posted by underway

In most cases, the content will have to be purchased by the web operator....Pandora, Slacker in this case.

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Possibly they would "buy" a channel from sirius...kind of like HBO is on Directv, Dish and Cable...

hay Pandora and QNX team up for internet radio in the dash

heres the link from the telematics conference

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"Pandora is pleased to partner with an automotive leader like QNX Software Systems because we believe our service is essential to achieving the goal of a truly personalized infotainment experience in the car," said Jessica Steel, senior vice president, Pandora. "By offering QNX-based infotainment systems equipped with the Pandora service, automakers will allow drivers and passengers to enjoy the same personalized radio experience on the road that they now enjoy at home or at work."

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Originally Posted by tim wallick

Well they don't compete with sat-rad and the content sucks because its just a juke-box.....but thats about to change

heres the link

i guess this could be moved to yesterdays thread, round two....follows

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Your proving the point that free cant cut it. Been saying this for months. Cant even be profitable if they do charge, by the looks of what hes saying. Big music companies will not die. They are currently adjusting to new technologies that is lessening their control over delivery.
Good for them. I hope they have an entirely new product to market, because I dont see what they can charge for. Unlimited skips isnt going to make me pay $1 a month for Pandora. OUCH!!!

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Originally Posted by tim wallick

Well they don't compete with sat-rad and the content sucks because its just a juke-box.....but thats about to change

heres the link

i guess this could be moved to yesterdays thread, round two....follows

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Glad you finally admitted it sucks and they arent competitors, but your wrong about it changing.

For what its worth, I don't necessarily see it as the ad supported model not working as a business model but instead that there is a market for offering a premium subscription to cut out ads. There are a lot of companies that offer this kind of non ad supported model for those willing to pay for it.