Pandora Media, Inc. (P) 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.
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. (F) 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. (SIRI) and Apple Inc. (AAPL). Apple Inc.’s upcoming iTunes online radio service will offer hands-free voice control in automobiles.
Currently, Pandora has a Zacks Rank #3 (Hold).
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