27 August 2011

Internet Radio Threatens Traditional Radio

"Internet radio service Pandora posted its first financial results as a public company yesterday, six months after filing for an IPO. While the company may not yet be profitable, they're off to a pretty good start in terms of growth. Its total revenue grew 117% year over year and its total listeners grew 125%. Contained amongst these investor-pleasing stats was another takeaway: The company is now commanding ad rates comparable to those sold on terrestrial radio stations, as GigaOm pointed out" (Titlow, 2011). 

What could this mean? Advertisers are not placing their ads on Pandora because they "like" it. Advertisers place their ads where they expect their primary audience (potential) buyers to be listening.


Titlow, John Paul (Aug. 26, 2011). As digital revenue goes up, will the web finally disrupt radio? NYTimes.com. Retrieved from http://www.nytimes.com/external/readwriteweb/2011/08/26/26readwriteweb-as-digital-revenue-grows-will-the-web-final-92688.html?ref=internet.

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