
Pandora: In the middle of music
Pandora is an Internet radio service created by the Music Genome Project. The listeners start by entering a song or artist that they would like to hear and the service responds by playing selections that are musically similar. When a song comes on that you like or dislike you press the thumbs up or down to tell Pandora for future reference. Pandora is available on the Internet and also on all Smartphones including Blackberry's, iPhone's and Droids through an application. Pandora is an ad-supported website.
Unlike many ad-supported music websites, Pandora cannot play music on-demand which is why the records labels support them. According to Russ Crupnick in the article above (a senior industry analyst for entertainment at the NPD Group) online radio drives in a 41 percent increase in paid downloads. We then ask why a free internet radio music source such as Pandora brings up the revenue of paid music? Because Pandora introduces people to new music due to not playing music on-demand. Like I said earlier Pandora picks songs or artists that are like the one you initially picked. So this can lead you to new artists which you omay or may not like and then want to buy so you can listen to it on-demand.
People such as Tim Westergren, the company’s co-founder and chief strategy officer are hoping to drive music sales in other ways too. Such as the idea of when you hear a new artist that you like, you can pick the thumbs up and then later down the road recieve notifications of when the artist will be in town. In the future they hope that the record labels will let Pandora turn to On-Demand.