Pandora Earnings Preview – Streaming Music King Hits Ceiling

Pandora is a wildly successful streaming music company. It has the biggest audience of any similar service, with more than 76 million people tuning in as of Q2. According to Pandora, that accounts for more than 8% of the entire radio listening market! […] While listener hours were up by much more than that, with about 29% growth, it is important to note that if Pandora stops growing the number of people who subscribe, it will have a very difficult road ahead. […] Recently, an organization called SoundExchange pitched a higher royalty rate for streaming radio services like Pandora, effective in 2016. […] SoundExchange wants Pandora to pay 0.25 cents per song in 2016, which bumps up to 0.29 cents by 2019. However, when you do the math that works out to well more than half gross revenues. – Jeff Reeves,InvestorPlace¬†¬†
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