Posted: 7/20/2011 10:28:15 AM EDT
| Is it time to get in on this? What do you guys think. |
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Since you have to know what questions to ask, here's the three things I'd would want to know (and don't).
1) How are people going to want to consume music in the future? Predictive internet radio like Pandora, personal collection via the cloud, or subscription services where you can stream anything? 2) How is Pandora going to get revenue from in the future because right now the service is mostly just ad-supported. 3) Who else is going to get into this business and beat them at their own game? Google strikes me as a company which could do everything Pandora does just as a side project like Google+ competing with Facebook. I'd want to have good answers to these things before buying their stock. |
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Quoted: Since you have to know what questions to ask, here's the three things I'd would want to know (and don't). 1) How are people going to want to consume music in the future? Predictive internet radio like Pandora, personal collection via the cloud, or subscription services where you can stream anything? 2) How is Pandora going to get revenue from in the future because right now the service is mostly just ad-supported. 3) Who else is going to get into this business and beat them at their own game? Google strikes me as a company which could do everything Pandora does just as a side project like Google+ competing with Facebook. I'd want to have good answers to these things before buying their stock. And I read that it may be prime for an Apple buy out |
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Quoted:
http://www.bloomberg.com/news/2011-07-21/pandora-says-mobile-user-growth-outpacing-demand-for-ads-raising-concern.html "Pandora isn't profitable, with losses of $92 million since 2000, the Oakland company said earlier this year. Pandora's costs continue to grow because of higher licensing fees for the rights to music. Increasing mobile ad sales will be needed to help offset those expenses, said Rich Tullo, an analyst at Albert Fried & Co. in New York." How are companies like this still in business? Mind blowing. |
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Pandora has a subscription service also available which is one revenue avenue, but I'm not sure how much it is contributing to the bottom line. But then again, they aren't the only game in town and others have features that Pandora doesn't (Slacker, Grooveshark). I wouldn't doubt any major gains in stock would have to be from a buyout or a speculation of buyout (disclaimer, not a financial expert) |