The End of Pandora?
August 18th, 2008by mlassoff
There has been much buzz in various news outlets and blogs regarding the possible end of Pandora. For those of you unfamiliar, Pandora is one of the many music genome style websites that serves up music based on the users announced band affinites. A user who tells Pandora they like Journey will hear music from REO Speedwagon, Styx, Heat and other related bands.
Pandora seems to be indicating if the end comes, it will be because of high music licensing costs- a common refrain among internet broadcasters. While this is unfortunate, I’m not totally sure that music licensing is the only reason Pandora may go under. It seems as though Pandora and other related sites were never built with a serious revenue or profit model in mind. Sure, playing music people like is a great service, but without a related profit model, how is one to survive doing it?
Some bloggers have tried to determine what Pandora’s possible demise means for internet radio… I would say the greater meaning is not as ominous as some would like to believe. Pandora had a bad business model– known expenses without known revenue streams. What the demise of Pandora does tell online radio producers is that unlike Pandora, you need to have a plan to cover your expenses and hopefully profit from your online radio enterprise.




