Pandora Presentation at Telsey Conference Notes

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This post is part of a series of posts called “Company Notes.” These posts contain quotes and exhibits from earnings calls, conference presentations, analyst days and SEC filings. The quotes are generally pieces of information that I find interesting or helpful to understanding the company, industry or economy and are not meant to provide summaries of the full content of the call. Other posts in this series can be found by clicking here. Full transcripts can be found at Seeking Alpha.

$P Notes From Presentation Telsey Advisory Group Conference

“The average Pandora listener listens around 21 hours per month”

“The other 20% is what is oftentimes confused with as competition for Pandora, which is the on-demand space…that amounts to around 20% of the consumption of audio that takes place in that lean forward environment”

“When you look at how radio consumption takes place, nearly half of it takes place in the automobile, in the car side of things. The other — the rest of it, 35% in the home, 18% in the office is generally how radio has been consumed, again to the amount of roughly 56 hours per month. When you look at what Pandora is bringing to the table in terms of combining the best of what has historically made radio successful, which is ubiquity, which is discoverability, zero work, and ad supported and free to the consumer, that is why roughly 93% of the U.S. population listen to radio still on a weekly basis.”

“We’re now over 8% of the U.S. radio market. That essentially makes Pandora the number one station in every major DMA throughout the country.”

“200 million registered users”

“That traditional terrestrial radio market makes up around $15 billion in total available market.”

“revenue per thousand hours…Desktop…$52 per thousand hours…mobile…$25 per thousand hours”

“when you do direct deals, the challenge with that is every two years– it’s up in the air again. And with due respect to our on-demand vendors, that’s a challenge that in Apple or Spotify, Rhapsody, a MOG, an RDIOall of those companies have to engage in that constant behavior of negotiations with the labels…we are very happy in terms of operating under our compulsory license, the way radio has historically done.”

“what makes Pandora special isn’t creating static playlist, it’s about creating real live dynamic algorithms.”

“Pandora’s algorithms…have to…evolve with both cultural and personal tastes, and that’s really what the power of the algorithms are.”