Pandora Media Inc (P)’s Music Service Still Beats All Others

Like Clear Channel Outdoor Holdings, Inc. (NYSE:CCO)’s 1200 stations, though, iHeartRadio is ad-heavy, with a long commercial break after only a couple of songs. Pandora, on the other hand, has shorter commercial breaks far less often than both iHeartRadio and traditional radio.

All those ads aren’t translating to success for Clear Channel Outdoor Holdings, Inc. (NYSE:CCO), with the company reporting $12.9 million in operating costs for its media division for last year’s third quarter. To offset that loss, the company has to rake in more than the $1.34 billion it earned in its most recent quarter. The company works hard to offset its cost by hosting regular concerts featuring today’s biggest acts, which not only brings in revenue through ticket sales but helps promote the iHeartRadio brand in a big way.

Listen everywhere

Traditional radio’s original competitor, Sirius XM Radio Inc (NASDAQ:SIRI), works hard to take on both Pandora Media Inc (NYSE:P) and Clear Channel by offering listeners the same access whether they’re listening on a car stereo or an iPhone. For $15-$18 a month, members have access to 140-155 stations with ad-free listening.

Sirius XM Radio Inc (NASDAQ:SIRI)’s subscriber base is growing, with the company reporting first-quarter earnings of $897.4 million. This is in part due to the company’s practice of roping customers in by providing its service in new and used cars for a free trial period. During this trial, some customers become hooked on the service and choose to pay to continue it once the trial period is up.

All three companies are enjoying growth as consumers become more comfortable with the concept of listening to radio on smartphones and tablets. As bluetooth technology continues to become more prevalent in cars, chances are even more consumers will switch to streaming radio options, taking radio stations with them from home to car to work for uninterrupted listening.

The article Pandora’s Music Service Still Beats All Others originally appeared on Fool.com and is written by Stephanie Faris.

Stephanie Faris has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Stephanie is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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