eMarketer: Let’s talk about the Pandora iPhone app.
Jessica Steel: The iPhone was really a game-changer for Pandora.
It was the first device where the lightbulb went off for listeners—and those in the industry—about the fact that Internet radio wasn’t just a Website and PC anymore.
“Pandora was the most downloaded application on the iPhone last year in the US.”
Pandora was the most downloaded application on the iPhone last year in the US, and Apple recently published their top downloads as they approach their billionth download countdown, and ranked Pandora number three after Google and Facebook. So it’s done really, really well for us.
We have over 4.5 million listeners, and we’re adding a lot of new listeners every day.
eMarketer: How is the Pandora app monetized?
Ms. Steel: We have advertising integrated into the application.
We also make a small commission on music sales when people hear a song on Pandora and then click through and purchase it from iTunes or other sources we link to.
It’s a smaller piece of the equation, but it’s important because we believe that when people discover music they love, it should be really easy for them to buy it.
eMarketer: Do you know how many iPhone app users were existing Pandora users versus new users?
“People have discovered Pandora for the first time through the iPhone.”
Ms. Steel: There are definitely existing Pandora listeners who have extended their relationship with us to new devices as we launch, but a large number of people have discovered Pandora for the first time through the iPhone and other smartphone devices. That’s because they don’t tend to be the folks who listen to music while sitting at their desk at work. They listen in other parts of their life.
When we can deliver Pandora on a device that intersects a different part of their life, they’re more likely to become a Pandora listener. That’s the important strategic value of devices—and the distribution relationships my team is creating.
Automotive is another important arena for us—45% of all radio listening in the US happens in the car. A lot of people today are bringing their iPhones into their vehicle and using Pandora while they drive. We’re looking at ways to make the experience seamless—integrating all of the core user interactions of Pandora into the vehicle, so users don’t have to fumble around to skip or rate a song.
eMarketer: What’s next for Pandora?
Ms. Steel: We’re working on a lot of different fronts.
In the connected home, any entertainment device with an Internet connection is fair game for Pandora Radio. At the end of last year, Samsung launched Pandora on their Blu-ray players, and they’re adding us to other devices as well.
“...making Pandora available on pretty much any connected entertainment device you turn to.”
Success for my team is making Pandora available on pretty much any connected entertainment
device you turn to.
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