• Pandora Sees a Decline of 1.3M Active Users, Attributes Loss to Launch of Apple Music



    Pandora CEO, Brian McAndrews, recently said he expects Pandora listenership to rebound after seeing Apple Music contribute to a decline of 1.3 million active users for the third quarter of 2015. This notes the launch of Apple’s streaming service is having roughly the same impact as the impact that was seen in 2013 with the introduction of iTunes Radio.

    In the quarterly earnings report for this past quarter, Pandora noted a year-over-year increase of roughly 1.6 million active listeners, bringing the number of total users up to 78.1 million for the quarter. This number, though quite large, represents a 1.6% sequential decline which was attributed to Apple Music. McAndrews had the following to say regarding the matter according to a transcript of the recent earnings conference call:

    This was obviously a unique quarter in the streaming music business. The June 30, launch of Apple Music with its 3-month free trial, as well as significant category spending and trial offers across multiple players, brought increased focus to the broader on-demand category during this period.
    Despite the competition that is seen from Spotify, statistics show that Pandora listenership is trending upward over the past few quarters, with a particular spike during the holiday season. This September quarter represents an unseasonal decline for the streaming service. McAndrews, who previously anticipated the effect that Apple Music would have on Pandora’s numbers, even went as far as warning investors of potential negative growth. When the news surfaced of the decline, the impact was in line with the expectations, where he continued to characterize the decline as short-term. He continued by stating the following regarding the matter:

    I am pleased to say that, given the scale of press and consumer attention on this launch, the impact on our active users and listening hours was muted and was, in fact, consistent with what we experienced during the launch of Apple's radio service in 2013.
    The recent statements appear to be in contrast to an early evaluation of Apple Music in July when McAndrews mentioned the service had no material impact on Pandora one month in. Just days later, Apple reported that 10 million users had signed up to try out the new streaming product. Uptake was expectedly slow for Apple’s streaming music service after its initial hype. More recently, Apple CEO, Tim Cook, said the service now sits at over 15 million users but more importantly touts 6.5 million paying subscribers. This number is large compared to Pandora’s audience which largely opts to stream ad-supported content instead of following the likes of Spotify and now Apple Music with a premium-tier access model.

    This past quarter, Pandora ended up hitting $311.6 million in revenue, which is a 30% increase year over year. That being said, the company still posted losses of roughly $85.9 million due in large part to a recent settlement payout to record companies over content licensing agreements. We’ll have to wait and see how the situation pans out for Pandora and how Apple Music continues to fare over time.

    Source: NASDAQ, Pandora (Investors)
    This article was originally published in forum thread: Pandora Sees a Decline of 1.3M Active Users, Attributes Loss to Launch of Apple Music started by Akshay Masand View original post
    Comments 10 Comments
    1. gldoorii's Avatar
      gldoorii -
      I'm not (ad) really surprised that (ad) this (ad) happened. If (ad) anything they should (full screen ad, no more skips left)...
    1. jonathan1683's Avatar
      jonathan1683 -
      exactly the ads are awful nothing like blasting a loud *** commercial in you car every other song
    1. HovikGas's Avatar
      HovikGas -
      Quote Originally Posted by jonathan1683 View Post
      exactly the ads are awful nothing like blasting a loud *** commercial in you car every other song
      How much does Pandora One cost these days?
    1. hogcia's Avatar
      hogcia -
      If you don't want ads then pay up! It's not like Apple Music is free. Pandora one ( no ads ) is $4.99 a month, I don't mind the ads every 5 songs or so. FREE is for me!
    1. bigboyz's Avatar
      bigboyz -
      Quote Originally Posted by gldoorii View Post
      I'm not (ad) really surprised that (ad) this (ad) happened. If (ad) anything they should (full screen ad, no more skips left)...
      HAHA! Exactly! More adds than actual music play.
    1. ecd5000's Avatar
      ecd5000 -
      There's a tweak that gets rid of all that. Now if I could only remember what it was called.........
    1. bbrks's Avatar
      bbrks -
      AdBlocker
    1. Sage I's Avatar
      Sage I -
      Pandora Downloader for life...
    1. jonathan1683's Avatar
      jonathan1683 -
      I have it too I use to pay for Pandora until iTunes Radio came out and Pandora raised the prices . u can follows flex 2 from Cydia and it can remove commercials
    1. Sage I's Avatar
      Sage I -
      Quote Originally Posted by Sage I View Post
      Pandora Downloader for life...
      I am currently paying for Pandora One for the past few weeks since updating to 9.1 and will continue to pay until I can jailbreak 9.1 or 9.2
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