Pandora Releases Financials, Reportedly Courts Buyers, Apple Passes Spotify Geographically [Music News Recap]
Posted by Glen Sears | February 16, 2016 10:13 am | No Comments
Story of the Week
Pandora Releases Financials: Huge Revenue & Losses, $120M to Battle Spotify, May Be Courting Buyers
Music-streaming service Pandora announced its latest financial results last night, revealing revenues of $1.16B in 2015, but a net loss of $169.7M. Pandora is preparing to expand from its current radio-like model to fully on-demand, subscription – including outside the US. CEO Brian McAndrews said that 2016 will primarily be a year of licensing negotiations and product development for Pandora, with its global rollout beginning in earnest in 2017.
“Of the investments we are outlining, $120M of it is earmarked specifically to develop and launch new music services that we believe will accelerate revenue growth in 2017 and beyond,” said CFO Michael Herring.
Interestingly, a New York Times report, published just hours before Pandora released fourth quarter and 2015 earnings, claims the Internet radio company has engaged Morgan Stanley to meet potential buyers. A Pandora representative told Billboard the company “decline[s] to comment on rumor or speculation.”
McAndrews has admitted that intensifying competition is having an effect on Pandora’s listener growth, but the CEO was also bullish about whether any of those rivals are a serious threat. “Over the years, we have seen more than 30 imitators and so-called Pandora-killers. And yet, Pandora has thrived where others have not, becoming the mobile service with the highest engagement across the consumer internet.”
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