The large earnings surprise would have been enough to land Pandora Media Inc (NYSE:P) on this list, but Kennedy’s exit turns the shock value up by several magnitudes. Why leave when the company is doing so well? Rumor has it that both Apple Inc. (NASDAQ:AAPL) and Google Inc (NASDAQ:GOOG) are collecting content licenses as they prepare to launch their own Pandora-style services. With two online media giants gearing up to steal Pandora Media Inc (NYSE:P)’s thunder, ad sales, and customers, maybe Joe Kennedy just couldn’t handle the heat?
The truth is a bit less exciting, of course. This is an orderly transition, not a scorched-earth rout. Kennedy will remain as chairman of the board, and he said that he’s “excited to continue to lead the company” until a suitable successor has been named — “no matter how much time that process takes.” But he also said that “it’s time to get to a recharging station sooner than later.”
Sounds like a case of the Mondays on an epic scale. Joe Kennedy fought for his newfangled music-distribution model for nearly 10 years, and the opposition doesn’t always fight fair. He ran everything from overall strategy to nitty-gritty day-to-day operations. Give the guy a vacation.
3. Gigabit fiber in every state!
You know the gigabit fiber network that Google is building in Kansas City (both Kansas and Missouri)? The one where you can get a network so fast that your computer might not keep up, for just $70 a month? FCC Chairman Julius Genachowski wants to provide that kind of disruptive networking all over the country — and fast.
Genachowski fielded press questions in a Bloomberg interview this week when an intrepid reporter asked this incisive question:
“When he hear from the CEO of Time Warner Cable Inc (NYSE:TWC) who says customers don’t actually want that ultra-high-speed that they have in Kansas City, should we believe that?”
The chairman gave nods to other gigabit initiatives across the country but said that more is needed. Why? Because he wants “a critical mass of 1-gigabit communities in the U.S., at least 1 gigabit in every state, by 2015.”
To be clear, Genachowski is talking about consumer-level services. Businesses everywhere can already access ultra-fast networks pretty much anywhere, but they have to pay out the nose for fiber rolls and customized service packages. The disruptive idea here is in true high-speed services at affordable price points.
“That’s what will attract innovators to develop next-generation products here in the U.S., launch them here in the U.S., drive private investment, drive jobs,” Genachowsky said. “This is really a bet on if we build it, innovators will come. That’s been the story of American technology.”
Bold words, indeed. I, for one, hope the FCC chairman’s support turns up the heat on cable companies and telecoms everywhere to realize this vision.
Pandora has won millions of devotees among music fans but few supporters on Wall Street. The online jukebox seems to be redefining the way we consume music, a transformation that’s only likely to grow. But high royalty rates and competition from all corners threaten to silence the company. Can Pandora translate success with its listeners into a prosperous business model that will deliver for investors? Learn about the key opportunities and potential pitfalls facing the upstart radio streamer in The Motley Fool’s new premium research report. All you have to do is click here now to subscribe to this invaluable investor’s resource.
The article 3 of the Week’s Biggest Surprises originally appeared on Fool.com and is written by Anders Bylund.
Fool contributor Anders Bylund owns shares of Google, but he holds no other position in any company mentioned. Check out Anders’ bio and holdings or follow him on Twitter and Google+.The Motley Fool recommends and owns shares of Apple and Google.
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