Bridge Ratings: Pandora Losing Audience Engagement, Satisfaction, TSL
March 21, 2016 at 11:46 AM (PT)
BRIDGE RATINGS, which has been tracking the growth in use of PANDORA since 2006, with studies being conducted in 2013 and 2014 (the results of which can be accessed here), has just updated the study here. One revelation: The number of weekly occasions of listening as well as time spent with PANDORA is decreasing.
A complex mix of listener dissatisfaction coupled with alternative sources for a similar audio listening experience are at the core of this reduced engagement. For PANDORA users who have been on the service for more than 25 months, usage is down 21%, from 19 minutes per session in 2014,to 15 minutes in 2016.
Interviews with the panel indicate the following are impacting time spent with PANDORA
-- Generally, high dissatisfaction levels with the PANDORA service over time.
-- Song repetition, lack of song and artist variety for the users' tastes.
-- Increasing time spent with alternative music streaming platforms such as SPOTIFY, YOUTUBE and APPLE MUSIC.
Based on interviews with panelists, PANDORA is experiencing similar reductions in time-spent and satisfaction as other media. With increasing competition and falling profits, the company has entered a new mature phase of its growth cycle.
In order for it to sustain growth, PANDORA is developing a product extension strategy with recent purchases of TICKETFLY to provide concert ticketing options to its user base and RDIO, the music streaming service which would provide PANDORA a product extension of an on-demand streaming platform.