Pandora has the largest number of users for music streaming, but the competition is encroaching. Spotify is said to be arming itself with another $500 million in capital, and Apple Music recently surpassed 10 million paying users. Pandora’s users peaked at 81.5 million at the end of 2014, declining to 78.1 million in the third quarter.
Pandora has the best algorithmic stations around. I’m surprised they’re shopping themselves around after taking over the Rdio assets last year, but I guess we’ll see what happens.
And all potential buyers said “We’ll wait for the stock to crater a little more.”
Say it ain’t so. I loath Spotify and Apple Music just doesn’t cut it.
I agree they have the best algorithmic stations around but they’ve stagnated otherwise and it’s paid option should include unlimited skips like Slacker Radio Plus (which costs less).
But are algorithms what users are looking for? The surge in Spotify and Apple Music would make me think that more users want on-demand streaming than “radio.” I’m a Spotify user and probably listen on-demand 75% of the time and “radio” 25% of the time. If Pandora wants to get back into the game, they need on-demand streaming.
I like having on-demand as an option, but much prefer a customized radio station that will let me discover new music. I’d love Apple to buy Pandora for their Music Genome work and really reinvest in it. Discovery is the secret sauce no one has cracked yet in the digital music space. It will be a huge advantage for whoever can get there.
I’d be interested to see stats from Apple and Spotify (though I’m sure we never will) to see listening breakdowns – how often do people listen to radio stations vs. streaming an artist, album, or playlist on demand? The only differentiating feature between Pandora and Spotify/Apple Music is on-demand streaming, so I’d guess that it’s the reason Pandora is on the way out. It would be nice to see a company that offers on-demand make use of Pandora’s Music Genome Project and algorithms.
but perhaps if Apple bought Pandora to get those algorithms it might get better.