Westwood One's Pierre Bouvard: Does Pandora Have A Problem With 18-24-Year-Olds?
March 28, 2016 at 1:25 PM (PT)
CUMULUS/WESTWOOD ONE Chief Marketing Officer PIERRE BOUVARD's latest blog details the problems that PANDORA might be facing with its MILLENNIAL 18-24-year-old demo, as he wonders if it might be the next MYSPACE.
BOUVARD shares five findings from EDISON RESEARCH’s “Share of Ear” study explaining why trouble may well be brewing for PANDORA in servicing this crucial demo:
1. Among 18-24s, time spent with on-demand services is surging at the expense of owned music. From fall 2014 to fall 2015, the share of total audio time spent with AMERICANS, owned music has dropped from 24% to 20.5%. Meanwhile, the share of time spent with on-demand services SPOTIFY and YOUTUBE has jumped from 16.3% to 23.7%.
• “For the first time, 18-24s are spending more time with music they rent versus music they own.”
2. PANDORA's 18-24 problem stems from YOUTUBE and SPOTIFY, with share of listening among that age group surging 45%. Those two services are now nearly 2.5 times as big as PANDORA.
3. SPOTIFY's 18-24 TSL will soon overtake PANDORA. In one year, SPOTIFY’s 18-24 share of listening has grown 134%, from a 3.5% share to an 8.2% share. For all of 2015, PANDORA hovered around a 9% share.
4. SPOTIFY’s reach is growing; PANDORA’s reach growth has stalled. Among all people 13 and over, the number of total uniques, or different people PANDORA reaches, has flatlined. SPOTIFY’s total reach is up 23% since fall 2014.
5. SPOTIFY’s audience has more passion and does a much better job converting reach into audience share of TSL. Among 18-24s, or every 1% of reach, SPOTIFY generates a .45 share. PANDORA is only able to convert 1% of reach into a .37 share.