Pandora and the freemium case analysis

Offline listening If regulation allows it, Pandora should develop an offline listening mode so that users can preload a playlist to listen to when anticipating that they will be in a place without Internet connection subway, basement, etc. This is what made Mailchimp succeed in using this freemium model.

Pandora will conveniently provide consumers with the best radio listening experience based on their own preferences, and connect artists directly to their fans. One feature set is an encyclopedia-like exploration function.

This gave it a solid customer base that enjoyed its services, hence no danger of losing its revenue Hutchison, Artists are increasingly focused on building their music careers outside of only iTunes or Amazon sales, and are emphasizing efforts on direct-to-fan marketing and limited edition physical goods, like merchandise, sponsorships, retail and performance.

As convenience becomes increasingly important to user satisfaction, Pandora should develop a Pandora One application that can transfer playlists from Spotify and iTunes into the Pandora app.

Web Marketing for the Music Business. Pandora has generally not advertised itself in the past, but as consumers increasingly interact online, opportunities exist within gaining visibility in social media networks.

This original business model likened Pandora to technology that could then be licensed to other companies. Before customers can join the premium plan, they have to be convinced of the services by accessing the free service plan Rickman, If consumers like the service, they would eventually subscribe to get premium services that lacked adverts.

Having free subscribers is good for advertising, but for every free user additional costs are added to the equation. The premium service is a radio listening service free of adverts while the free service is an advert supported radio service.

For services like Pandora, royalty structures in effect with respect to the public performance of sound recordings in the United States, content acquisition costs are increasing with each additional listener hour. Head of partnership account: As of July 31,Pandora had million registered users, For Pandora, access to and good pricing on data plans will be an integral part of the respective business.

As a well-oiled strategy, it has defined business objectives and revenue generation plan. Artist management companies promote and market recordings on behalf of their clients, and consumer electronics companies have become digital music retailers.

It is a sign of desperation for business and a poor way of attracting customers.

Since initiation, stock price has been extremely volatile and steadily declined see appendices 3. The website looks dated and the small link promoting subscriptions is located in the high right corner of the site, contradicting the intention of attracting more subscribers.

Satellite-radio Company, Sirius XM, has decided to offer its customized Internet radio service within the next few months. As more competitors enter the market, it becomes progressively important to maintain brand recognition and position as number one in the US market.

The Pandora One account would be valid in all other devices utilized by consumers, including automobiles, tablets and web usage.

Pandora and the Freemium Business Model

On the other hand, Ning failed in its premium model because its free service had almost everything that consumers wanted. Before going freemium, Mailchimp operated a subscription-based system where users paid before accessing its services.Spotify, Pandora, and Rhapsody: Business Model Analysis The Music Industry’s everlasting challenges have most recently undertaken targeted the digital consumption of music.

As technology increases accessibility with media, specifically music, companies such as Spotify, Rhapsody, and Pandora have all taken a leap toward the online-streaming subscription route.

CASE STUDY: Pandora and the Freemium Business Model Pandora is the Internet’s most successful subscripTon radio service. Pandora Case Analysis.

Pandora offers an Internet radio service, which tailors the music played, based on user preference. Pandora began as a free service to its consumers, while they found a way to earn a profit.

Pandora implemented the freemium model in which 99% of users receive the service free and 1% of users pay for additional. Pandora will have to pay 50 % of their revenues to the record labels as a royalty. 1 % of the total users as a subscriber group is very minimal.

The key thing is whether freemium model is sustainable? Freemium model must be changed to better respond to the traffic with brand loyalties and profit maximization. This case study will analyze Pandora’s current business model and factors that contributed to its success.

It will also compare the free and freemium business models and. Pandora Case Analysis Pandora offers an Internet radio service, which tailors the music played, based on user preference.

Pandora began as a free service to its consumers, while they found a way to earn a profit.

Pandora utilized several different business models before implementing the freemium model.

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Pandora and the freemium case analysis
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