RAIN 10/11: Pandora's removal of listening cap will lead to millions in new revenue, says analyst

Michael Schmitt
October 11, 2011 - 12:00pm

PandoraPandora's recent move to slash its monthly listening limits for free users (RAIN coverage here) may lead to $53 million in additional revenue over the next four years, according to one analyst.

Scott Devitt, a Morgan Stanley analyst, tells Bloomberg the change may have plugged a loophole that allowed users to listen on mobile devices even after reaching their 40-hour-per-month limit.

Devitt says Pandora's desktop listeners generate nine times the revenue of the service's mobile users. But he believes the company's mobile revenue will "almost double to $40 [per hour] in 2016," surpassing licensing fees of $23 per hour.

More than half of Pandora's audience in August was mobile, according to comScore (here). Bloomberg reports that 70% of Pandora's usage comes from smartphones and tablets.

Devitt predicts Pandora will reach 159 million active listeners worldwide by 2021.

Bloomberg has much more coverage on Pandora and its mobile monetization right here.

Michael Schmitt
October 11, 2011 - 12:00pm

SpotifySpotify has hired Gerrit Meier as General Manage of Distribution and Partnerships. Meier was formerly COO of Digital at Clear Channel Radio and has also served as VP of Digital Business Development at EMI Music North America.

Peter Kafka has more coverage at AllThingsD.com here.

Michael Schmitt
October 11, 2011 - 12:00pm

Triton Digital's founders Neal Schore (left) and Mike Agovino (right)"Like Levi Strauss, who got rich selling goods to immigrants during the Gold Rush, the founders of Triton Digital are making their fortune by providing the technology to radio companies wanting to mine digital gold."

So begins the L.A. Times' feature on Triton Digital and its founders: Neal Schore and Mike Agovino. The article follows the "old-school radio executives" from their decision to start Triton to what the company is up to today. You can find it right here.

Michael Schmitt
October 11, 2011 - 12:00pm

Roku LTRoku will release a $50 "LT" version of its web-connected TV box next month. Roku's boxes include apps for Pandora, TuneIn Radio, MOG, Live365, MP3tunes, Radio Paradise and Rdio -- as well as video services like Netflix. Engadget has more coverage here.