Pandora at Morgan Stanley Conference Notes

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A digest of some of the top insights that I’ve gathered from this week’s earnings calls.  Full notes can be found here.

Brian McAndrews – Chairman, President and CEO

Starting to see growth slowing

“our listener hours were about 1.5 billion, up 9%, our unique listeners was 75.3 million, up 11%. And so we’ve said, obviously, with the lot large numbers we are starting to see some growth slowing.”

Big market opportunity

“looking at the opportunity, we think it’s a very huge opportunity, $15 billion radio in the U.S. alone growing to $17 billion 2017, $22 billion-ish in video and display, digital advertising and then another $12 billion in mobile and when you kind of put all those together. It’s a really, really big opportunity for us because we play in all three of those market opportunity.”

Number one in 12 of 15 largest markets

“Media Audit also says that we’re number one in 12 to 15 markets, top 15 markets. So we stand by those numbers.”

On the impact of iTunes radio

“e’re still growing, the pace has slowed some, is any of that competitive? It’s really hard to know.

The reason we specifically could address iTunes radio, it was the first time that our active listeners actually went down, went down 2.6% the month that iTunes radio launched. So that was seen pretty clear to be a cause and effect there. And then our research indicated as you said there were people who were less committed listeners which make sense checking out iTunes.”

Spotify says it doesn’t compete with Pandora

“I mean Daniel Ek has publicly said we don’t compete with Pandora. We don’t think we compete with Pandora. So their goal is really to get subscribers. So they’re finding different ways to bring you into a free environment to be the funnel to get you to subscribe it. As I said we don’t have that kind of funnel, if you want to subscribe, we’re happy to have you subscribed. But if you want free, we’re equally happy because that’s really where we see the bigger opportunity.”