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Pandora CEO Roger Lynch wants to offer listeners an easier way to discover new podcasts as the company adds more podcasts to its service and beefs up advertising.
Indeed, podcasts will become a more significant aspect in the months and years ahead for Pandora (P), which has over 75 million monthly active users — 5.5 million of which use Pandora’s paid features and services. The key to growing those users, according to Lynch, who joined the company in September, is offering a more comprehensive catalog of content.
“In the car, 80% of listening is music, while 20% is other stuff,” Lynch explains to Yahoo Finance. “As a service, if you don’t have that 20%, it doesn’t mean you capture the 80%, because then people will just stay on their FM Radios. But if you can create audio content for people that gets packaged with the music content in a way that doesn’t give them a reason to go back to that FM dial, then you capture much more than just the spoken word.”
However, it isn’t enough to just serve up podcasts, which Pandora has offered in bits and bytes for several years now. (Pandora streamed the second half of the hit podcast series “Serial,” as well as episodes of “This American Life.”) The other part of the equation is creating a way for listeners to easily discover new podcasts they might like. To that end, Pandora is currently developing what it calls the “Podcast Genome Project,” a massive database not unlike its Music Genome Project that would study and compile the attributes for every podcast in Pandora’s library. If you regularly listen to certain kinds of podcasts on Pandora, the Podcast Genome Project would help Pandora understand the similarities among those podcasts and serve up similar podcasts you may like.
Of course, the goal isn’t just to reel in listeners, it’s also to make Pandora that much more attractive to advertisers as a platform.
Making Pandora a moneymaker
In his first few months as Pandora’s chief executive, Lynch has doubled down on Pandora’s monetization efforts, particularly advertising, following a slump in 2017 that saw several top-level executives, including former CEO Tim Westergren, depart and the sale of its ticketing service Ticketfly to Eventbrite for $200 million.
Lynch pushed for the acquisition of digital audio ad company AdsWizz for a reported $145 million earlier this year. Pandora is also looking to offer podcasters monetization options that will be superior to the current state of podcast advertising. Currently, many podcasters still rely on ads that they read themselves on air, which Lynch has said isn’t the most effective advertising model.