BTIG Research
Posted Thursday, April 19, 2012
by Richard Greenfield

In August 2011, we raised the question of whether Pandora usage declines per (monthly) user over time, due to the limited size of Pandora’s music catalog (less than 1 mm tracks, as its requires a “human” ear to listen to each song for about 20 minutes and grade it on 450 “genes).  Our blog at the time (click here) cited a Bridge Ratings study from 2010, illustrating that consumer satisfaction with Pandora waned considerably from their first six months to year three.

Given the explosive growth of Pandora users over the past couple of years, many investors dismissed the 2010 Bridge study, which even we noted upfront was a bit dated.  At the end of calendar 2010, Pandora had less than 20 mm monthly users compared to 50 mm today.

Read more: http://www.btigresearch.com/2012/04/19/pandora-ad-load-negatively-impacting-listener-satisfaction-and-ad-load-must-increase-notably/?print=true#ixzz1sWeBIKHO