Pandora (P) Auto Deals Are Music to Investors Ears (WallStreetPit)
Pandora Media Inc (NYSE:P), the largest online radio service, announced yesterday that it has seen over 2.5 million unique activations through its partnerships with 23 car companies, and the heavily-shorted (30% short float) has exploded on the news. Pandora Media Inc (NYSE:P) stock finished 8.5% higher yesterday, and buying interest continued overnight and through the early parts of today’s session. By 9:40AM ET this morning P was up another 8%, although it has since faded well off its highs. The question now is, how far can the squeeze in this heavily shorted stock go?
Pandora (P), Musicians Will Soon Meet at Negotiating Table Over Royalty Fees (StreetInsider)
Pandora Media Inc (NYSE:P), music labels, and music artist group representatives will hold discussions in an effort to end a year’s-long feud over royalty payments. TheVerge said on Wednesday that negotiations will begin soon and is the first indication of the two sides coming to the table following multiple rounds of salvo. Due to a law put into place years ago, a three-member panel sets the rate at which web radio stations pay artists and labels to play music. Currently, Pandora Media Inc (NYSE:P) is only required to pay a fraction of a penny for each song played, or 25 percent of overall revenue, whichever is larger.
Pink Floyd letter slams Pandora’s deceptive moves (BizJournals)
Members of Pink Floyd are protesting a move by Pandora Media Inc (NYSE:P) to get musicians to write letters in support of Internet radio. The letter, which appeared in USA Today and was written by Roger Waters, David Gilmour and Nick Mason, slams Pandora for appealing directly to artists to write letters to support and grow the company without mentioning the fact that it recently dished out an 85 percent artist pay cut. “Fine print is one thing,” the letter reads. “But a musician could read this ‘letter of support’ a dozen times and hold it up to a funhouse mirror for good measure without realizing she was signing a call to cut her own royalties to pad Pandora Media Inc (NYSE:P)’s bottom line.”
Pandora’s Growth in Hot Pursuit of Sirius XM and Apple (247WallSt)
Pandora Media Inc (NYSE:P) has managed to remain afloat and is trying to get its growth up to other music and media peers and competitors. Sirius XM Radio Inc (NASDAQ:SIRI) is still the go-to in-car entertainment bundle in new cars, but there was a very surprising headline that we read: “Pandora: 1/3 of All New Cars in U.S. This Year to Have Service.” Sirius XM Radio Inc (NASDAQ:SIRI) is already in most new cars, but if Pandora Media Inc (NYSE:P) is already in one-third of new cars, then we cannot help but wonder if its media player integration will be in half of the cars in 2014. If so, then Sirius XM Radio Inc (NASDAQ:SIRI)’s latest growth rates may have more competition ahead. Another surprise was that the launch from Apple Inc. (NASDAQ:AAPL) into an expanded music service sure looks as though it is not going to be a huge financial threat to Pandora Media Inc (NYSE:P).