Tag Archives: PANDORA

Pandora hits the road with Toyota Entune system

Toyota is now offering an embedded version of Pandora on the 2012 Camry and 2012 Tacoma. That’s big for the streaming audio service, since the Camry is America’s best-selling car and the Tacoma is the best-selling compact pickup truck in the US market.

According to the announcement by Pandora Media, both vehicles began to appear on dealer lots in September 2011.

Pandora is available via the Toyota Entune system. With Entune, Pandora controls are made available via the radio dashboard, allowing drivers to easily select stations, thumb songs up and down, and skip songs using the vehicle’s controls. The key to connecting Pandora with Entune is the smartphone; Entune is currently compatible with Android, Blackberry and iPhone smartphones.

“Incorporating Pandora into the native environment of the car makes turning on personalized radio as easy as traditional radio. We’re thrilled that Toyota is offering our service to their drivers,” said Pandora executive vice president of business and corporate development Jessica Steel.

Pandora Suffers Blow To Outlook From Clear Channel Competition

iHeartRadio – 11 million songs

Pandora- 990,000 songs 

Clear Channel has launched its iHeartRadio app and website in a direct assault on Pandora’s growth. Its new offering will let users create customized stations, a core feature at the center of Pandora’s business model. Pandora also competes with Sirius XM, the sole provider of satellite radio service.

Pandora’s stock has slid over 10% in the last two days in part due to this news. We take a quick look at the new service and acknowledge that this could have significant implications for Pandora’s valuation going forward.

Our price estimate for Pandora stands at $10.12, slightly below the market price.


Clear Channel’s Challenge

Pandora is a leader in Internet radio in the U.S. and stands out for its ability to offer a unique and personalized Internet radio experience to listeners. Clear Channel will challenge this uniqueness when it offers users the ability to create personalized stations from a song catalog that is 10 times the size of what Pandora offers and provides a range of artists that is 5 times bigger. [1] And all of this is included with no caps on listener hours and it’s advertisement-free at first.

Impact on Pandora?

If Clear Channel successfully markets the app and website, users may opt to go to Clear Channel instead of Pandora especially if its selection of music is indeed much larger than Pandora’s. We don’t know yet how this library stacks up without playing more with the app. However we note that many users don’t necessarily need to make a switch since they can enjoy both services for free, which is what we plan to do until we pick a favorite.

However for valuation purposes, if Clear Channel or other competitors takelistener hours away from Pandora, this will invariably impact Pandora’s valuation.