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  • Pandora Solution Group 2

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    Pandora is currently facing issues with increasing costs and decreasing revenue and profitability. To break even, it needs 70% of available space filled with ads and 8 ads per hour of listening. The document recommends that Pandora force listeners to interact after 30 minutes of listening to reduce "leaky listeners," add audio ads between songs to reach listeners not looking at their screens, introduce a subscription model for ad-free listening, and provide an offline radio option.

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    pandora case

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    Pandora is currently facing issues with increasing costs and decreasing revenue and profitability. To break even, it needs 70% of available space filled with ads and 8 ads per hour of listening. The document recommends that Pandora force listeners to interact after 30 minutes of listening to reduce "leaky listeners," add audio ads between songs to reach listeners not looking at their screens, introduce a subscription model for ad-free listening, and provide an offline radio option.

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    © All Rights Reserved
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    46 views4 pages

    Pandora Solution Group 2

    Uploaded by

    S S P
    Pandora is currently facing issues with increasing costs and decreasing revenue and profitability. To break even, it needs 70% of available space filled with ads and 8 ads per hour of listening. The document recommends that Pandora force listeners to interact after 30 minutes of listening to reduce "leaky listeners," add audio ads between songs to reach listeners not looking at their screens, introduce a subscription model for ad-free listening, and provide an offline radio option.

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    © All Rights Reserved
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    of 4

    PANDORA CASE Group 2

    CURRENT ISSUES
    Royalties
    Increasing Costs
    Less Revenue
    Unprofitable Customers
    How to increase listeners
    BREAKING EVEN @ 70% AD SPACE AND 8 ADS/HR
    Break Even
    18000000

    16000000

    14000000
    Required listener hours/day

    12000000

    10000000

    8000000

    6000000

    4000000

    2000000

    0
    0.6 0.65 0.7 0.75 0.8
    Percentage of ad space
    7 8 9 10
    RECOMMENDATION
    To contain leaky faucets, every listener can be forced to interact
    after half an hour of listening by pausing the streaming. This will also
    increase interactions per hour.
    As most of the listeners dont look at the screen while listening, audio
    ads can be added between songs
    Subscription model can be introduced for the users who dont want
    interruptions.
    Offline radio option will pull crowd who want to listen certain song
    when they are offline.

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