CEO Resignation Opens Up Pandora Media Inc (P)’s Box: Apple Inc. (AAPL), Facebook Inc (FB)

Page 1 of 2

Following news that CEO Joe Kennedy will be stepping down after nearly 10 years at the helm, shares of online music streaming company Pandora Media Inc (NYSE:P) jumped 21%.

The 53-year-old will remain at Pandora until a replacement is found. In a statement Kennedy said,”I reached the conclusion and advised the board that the time is right to begin a process to identify my successor.”

Apple Inc. (NASDAQ:AAPL)

Kennedy’s announcement of his exit came on the heels of better than expected fourth quarter sales and improving finances.

Ad revenue for the quarter jumped 51% to $109 million. Growth year-over-year was robust and the company provided upbeat guidance. Subscription and other revenue rose 74% to $16.1 million. The company also expanded its sales force 40%.

Pandora currently commands 8% of all radio listening, and it’s the largest radio station in almost every major U.S. market. Total active listeners is some 67 million.

The company revolutionized the radio industry. Pandora Media Inc (NYSE:P) lets users create customized “radio stations” based on their listening tastes. Pandora will assemble a radio station based on songs or artists a user likes by carefully curating a select song list based on a user’s preference.

Users can tune in to listen on desktops or mobile devices. Auto makers have just started putting Pandora’s service in cars. Users are allowed 40 free hours a month. Once that threshold has been reached users receive a warning and can pay a nominal 99 cents for the rest of the month.

But that’s not how the company makes money. It’s ads the company relies on for revenue.

Apart from Apple Inc. (NASDAQ:AAPL)’s iTunes, Pandora remains the biggest name in digital music. Rivals include lesser known private names such as Songza and Spotify.

Founder Time Westergren has said in the past that on-demand music sites like Songza and Spotify are “not fundamentally competitive with radio listening” emphasizing Pandora’s algorithms and discovery elements that make for a unique listening experience.

Page 1 of 2
blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months Click to see monthly returns in table format!

Lists

The 34 Smartest Countries in the World

The 10 Countries with the Highest Suicide Rates

The 10 Most Technologically Advanced Countries in the World

The 10 Safest Countries in the World to Live in Peace

The 10 Top Selling Smartphones in the World 2014

The 12 Biggest Shopping Centers in the World

The 10 Friendliest Countries in the World

Qihoo 360 Technology Co Ltd (QIHU), Actavis plc (ACT), Yahoo! Inc. (YHOO) Among 20 Long Ideas from Sohn Canada

The 10 Laziest Countries in the World

The 10 Most Polluted Countries in the World

The 10 Most Dangerous Cities in America 2014

The Top 10 Gold Producing Countries in the World

The 10 Tallest Buildings in the World

The 10 Richest Stand Up Comedians in the World

The 10 Fattest Countries in the World

The 5 Best Summer Jobs for Teens

The 10 Most Religious Countries in the World Keeping the Faith

The 10 Most Educated Countries in the World

The 10 Most Popular Cell Phones in the World

The 10 Drunkest Countries in the World

The 10 Most Expensive Private Schools in the World

The 10 Smallest Countries in the World

Walking Dead Season 5 Spoilers You’ll Wish You Didn’t Know

The 10 Poorest Countries in the World

The 10 Greenest Countries in the World

The Top 10 Countries with the Highest Population in the World

The 10 Most Visited Countries in the World

The Top 10 Star Wars Characters in the Iconic Series

The 10 Most Expensive Android Phones in the World

5 Reasons Why The Illuminati Is Real and a Threat to Society

The 6 Scariest Halloween Costumes Ever Screamed At

The 4 Biggest Hedge Fund Managers in the World Today

The 15 Most Densely Populated Countries in the World

The 10 Biggest Tea Drinking Countries in the World

Top 6 Ways to Improve Your Checkout Process and Close Sales

The 5 Most Profitable Online Businesses You Can Start Today

The 20 Most Profitable Hospitals in the US

The 5 Most Profitable Home Businesses to Start

The 7 Teams that Will Win the Stanley Cup in 2015

The Top 10 Most Expensive Digital Cameras to Snap Stunning Shots With

The 10 Highest Quality Fast Food Restaurants In America Today

The 8 Best Halloween Decorating Ideas to Spook Up Your House

10 Marvel Women that Should Get a Movie Right Now

The 20 Best Remixes of Popular Songs that Will Make You Forget the Originals

7 Most Expensive Cities in the World

5 Least Expensive Cities in the World

10 Celebrities Who Believe In Scientology

10 High Margin Food Products to Build a Business Around

The 10 Most Expensive Clothing Stores in the United States to Get Decked Out At

The 5 Biggest Kickstarter Scams That Swindled Backers’ Donations

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!