RAIN 9/6: Pandora to reap $500m in mobile revenue by 2014, predicts eMarketer

Michael Schmitt
September 6, 2012 - 12:05pm

Pandora mobile adsPandora's mobile revenue will soar over the next few years, as will the whole U.S. mobile ad market, eMarketer predicts. The research firm expects Pandora's mobile earnings to swell from $120 million in 2011 to just under $500 million in 2014. (By comparison, Pandora reported more than $274 million in total revenue for fiscal year 2012.)

"On a net basis, Pandora Media has emerged as one of the strongest U.S. mobile display ad sellers, and its share of the total U.S. mobile display market is expected to reach 20.5% in 2012," says eMarketer.

Pandora announced in its fiscal results for Q2 2013 it had grown its mobile ad revenue by 86% year-over-year, reaching nearly $60 million (find RAIN's coverage here).

In fact, Pandora is currently earning far more from mobile than heavy-hitters like Twitter and Facebook, says eMarketer. That, of course, may change over the next few years, as those companies get their mobile act together. Pandora trails Google's massive mobile intake of $750 million in 2011.

Overall, eMarketer predicts (here) mobile ad revenues in the U.S. will grow to more than $6.6 billion in 2014, up from $1.45 billion in 2011.

Pandora also recently disclosed to the SEC that in Q2 2013, it saw a 112% increase in the number of ads delivered compared to the previous year. Additionally, the company has grown its sales force by 80% year-over-year. But the average price per ad declined 27%, "due in part to the mobile ad mix," reports Business Insider (here).

And of course, as we saw in Pandora's Q2 '13 results, all this growth in revenue is still being outpaced by usage and thus by staggering music royalty costs.

Paul Maloney
September 6, 2012 - 12:05pm

TheBlazePundit Glenn Beck has partnered with Clear Channel to launch "The Blaze Radio Network," an online talk radio stream that will be the home of talk personality Jay Severin.

The channel will stream from Beck's The Blaze website, and via an iPhone/iPad app and the iHeartRadio app. In addition to Severin's show, the new channel will include a simulcast of "The Glenn Beck Radio Program," another show called "Pat & Stu" hosted by Stu Burguiere and Pat Gray, and audio simulcasts of shows by TheBlaze TV, Glenn Beck's media enterprise.

According to the company, "TheBlaze now combines one of the world’s largest subscription streaming video networks, a website that generates over 9 million unique visitors per month, a radio network, a curated marketplace platform to help local small businesses reach consumers across the country and a monthly magazine."

"The Blaze Radio Network" is scheduled to launch later this month.

The press release is here.

Paul Maloney
September 6, 2012 - 12:05pm

Darren Henley is managing director of (and "the mastermind behind") Classic FM, "the most successful commercial classical music station in the world," writes The Independent in its profile. He's "the radio boss with a plan to drag classical music into the digital era." Classic FM, now celebrating its 20th anniversary, has a weekly audience of 5.5 million listeners. Henly has "reinvented classical music's reputation with the British public," writes the paper.

Henley has clearly set his goals on a global scale, explaining he wants Classic FM's website and stream to be the world's go-to destination for classical music, "responding to a surge in interest in classical downloads." He told The Independent, "We are at a tipping point now in digital consumption versus physical product. In the next 12 months, we will see digital really ramp up." He later admitted, "It's been years since I bought anything on CD. I've been 100 per cent digital downloads for quite a long time now."

He's brought on a team of journalists who upload classical music news, album reviews and video footage to the Classic FM website. And they've recently launched a free iPad app.

His efforts at bringing a new generation of listeners to the genre aren't limited to Internet and mobile content, however. The station shares studios with rock Xfm and urban Choice FM (and Capital Radio and Heart FM are upstairs). The proximity can lead to inspiration. "It's really good because we hear what they are doing in the lift and the canteen and you think, 'There are ways we can do that' ... I want to make sure we understand all the techniques people are using in pop music radio." And there's no sleepy octagenarian on-air personalities either. He's hired well-known TV personalities Alan Titchmarsh and John Suchet, whom he describes as "both people with big personal brand values from outside the classical music world but people our audiences very much relate to."

Read more in The Independent here.  

We'll present our first-ever RAIN Summit Europe, October 5 in Berlin. More information and registration here.

Michael Schmitt
September 6, 2012 - 12:05pm

StereoA new project from Hack a Day and featured by Lifehacker shows how to stream web radio content from your smartphone to just about any stereo system.

The solution involves making a Bluetooth/IR receiver, which requires healthy doses of patience and soldering skills. But if you're up to the challenge, find out more from Lifehacker here and Hack a Day here.