Internet Marketing Plan - Pandora Media, Inc.

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Internet Marketing Plan:  Pandora Media, Inc.

MKT 352 C1

Spring 2018

Enrique Quijano

Charles de Guzman

Rajeshwari Jidewar

Keri Rowen

Executive Summary

Company Overview

Pandora Media, Inc. (Pandora) is an online streaming music service in the United States that offers listeners a personalized radio experience.  Pandora’s comprehensive music analysis system, the Music Genome Project, is designed to create unique stations based on each user’s taste and continually evolve and adapt based on the listener’s feedback.  Users can also browse hundreds of curated genre stations to help find their desired music experience.  These personalized stations can be enjoyed on personal computers, mobile devices, TVs and voice assistants, or in-car services.

Industry Analysis

         Online music streaming services offer unlimited access to their content libraries either for a monthly subscription fee without advertising, or ad-supported with compulsory commercial breaks at intervals between tracks.  Subscription-based music streaming service is growing rapidly as listeners are increasingly willing to pay for premium content and enhanced services such as music recommendations and curation, integration with social media, and bundled services (Technavio, 2016).  The global online music streaming market is expected to grow by more than 13% by 2020 (Technavio, 2016).  With a market volume of US$4,854 million in 2018, the US generates the largest share of revenue (McIntyre, 2018).  Over 30 million people in the US subscribe to a streaming service, and the paid subscriptions segment shows the most growth, with 2017 revenues from subscriptions totalizing US$7.1 billion, an increase of 61% (McIntyre, 2018).

Two important growth drivers for streaming music services are the increasing use of cloud-based music systems by providers and the growing trend in wearable devices by consumers. Cloud-based services allow users to store, stream, download and share content, while providing legal access to online music regardless of the device used (Technavio, 2016).  Music streaming providers continue to focus on developing and refining applications and interfaces that are compatible with wearable devices to enable convenient and direct streaming of music for an overall connected experience. (Technavio, 2016).