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 @JonathanSegel

If you are addressing me, I said Pandora is a superior radio app to Spotify's. Radical is launching in Sweden in November with the most advanced music streaming service ever, so hang in there a few more weeks Jonathan and you'll be one of the first to experience how a modern music service CAN be done! http://pandodaily.com/2012/08/09/radical-fm-goes-after-traditional-radios-last-bastion-of-security

 

BR/Tom

2 years ago on Stop Fretting About Spotify’s Business Model, It’s Pandora We Should Be Worried About

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Several comments Hamish;

1) Pandora can be profitable tomorrow by increasing ad-load by only a few percent, Spotify cannot

2) Spotify is more easily copied and will be more vulnerable when iTunes starts streaming

3) Spotify’s 16M songs are owned by the labels and include 15M tracks no one wants, not true of Pandora’s well curated million

4) The reason Spotify has had lower penetration against Pandora than expected is because non-aficionados can’t be bothered curating playlists, and Pandora is a better radio app

5) There is nothing but label deals preventing Pandora from doing On Demand; it’s the simplest streaming service-type. And while the labels hate Pandora today, labels have more greed than pride - given the right numbers they’d get in bed with Pandora (and may very well do so one day).

 

Both services can be profitable in the long run if smart, though margins will always be low for their business models. That is why both are sacrificing profitability today to gain market share, in the hopes that scale will allow those small profit margins to equate to reasonable sums one day.

 

From the Hotseat...

 

Tom McAlevey,

CEO, Radical.FM

2 years ago on Stop Fretting About Spotify’s Business Model, It’s Pandora We Should Be Worried About

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