Can Pandora Media Inc (NYSE:P) Afford Royalty Costs?
The radio wars are heating up even as Pandora Media Inc (NYSE:P) announced that its listener hours had risen to 1.36B in September. This represented a rise of 18% in comparison to what it stood at in 2012 September. The company’s total share of radio listening hours in the United States rose from 6.53% to 7.77% and there was also a rise of 25% in its active listeners which now stands at 72.7 million.
Flip the coin and interestingly, you will see that rise in listener hours are also an indication of a rise in royalty costs. In its recent quarters, the company reported an increase in losses. This was because the listener growth resulted in higher royalties. In June, the company acquired a small radio station in South Dakota in an effort to make the company eligible for lesser music royalties.
The new leader
Another update is that Brian McAndrews, the MSFT veteran has now been brought aboard as the Chief Executive Officer and Chairman of the company. Pandora Media Inc (NYSE:P) had been on the lookout for a suitable person to fill in this position, for the last 6 months.
Wednesday’s trading session
Pandora Media Inc (NYSE:P) is a United States Internet radio. As of 31 January 2012, it had more than 125 million registered-users. In Wednesday’s trading, Pandora Media Inc (NYSE:P) dropped by 1.84%. The shares opened at a price of $7.93, climbed to an intraday high of $8.07 and dipped to a close of $8.02. Approximately 38.18 million shares were traded on Wednesday while an average volume of 22.19 million shares were traded over a 30 day period. The 52-week low of the company’s shares is $7.63 and its 52-week high is $9.37. Pandora Media Inc (NYSE:P) has a market capitalization of $8.58 billion.