Pandora Media, Inc.
) continues to gain popularity in the U.S. on the back of solid
growth of Internet radio listeners. The launch of innovative
products and services coupled with improving car sales has
resulted in such robust growth. Based in Oakland, CA, Pandora
provides Internet radio services in the U.S.
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Recently, Pandora Media reported key audience metrics for the
month of July, wherein hours listened to Pandora music increased
14% to 1.28 billion hours from the prior-year period. Moreover,
active audience for the month was 71.2 million, up 30% year over
year. Such massive growth of listeners has driven the company's
share of in the total U.S. radio audience to 7.08% against 6.13%
in the same month last year.
During the second quarter of 2014, the total audience listening
to Pandora music was 3.88 billion as compared with 3.3 billion in
same period last year, while average active listeners during the
same period was 71.03 million against 54.9 million in the second
quarter of 2013.
To tap the automobile market, Pandora is continuously forming
strategic partnerships with automobile companies as people
usually listen to music while driving. Pandora started with radio
system installation in
Ford Motor Co.
) in 2010 and has already installed it in more than 100 vehicles.
The company believes that the current fiscal year will be
profitable as it expects at least 33% of the total cars sold in
the country to have Pandora radios.
Two months back, Pandora introduced a new service through which
people can listen to radio at home through multiple devices.
Through tv.pandora.com one can easily connect any gaming consoles
or TV to listen to music.
Hence, we believe that such strategic moves undertaken by the
company will not only boost its Pandora fan base but will also
help the company to take an unprecedented lead over popular radio
service providers like
SIRIUS XM Radio Inc.
). Apple Inc.'s upcoming iTunes online radio service will offer
hands-free voice control in automobiles.
Currently, Pandora has a Zacks Rank #3 (Hold).