Forbes: CBS Radio Faces Pandora Threat
January 13, 2011 at 6:15 AM (PT)
FORBES points the finger in the direction of CBS RADIO in a current article, writing "increasing competition from satellite and Internet radio could shake CBS’ position in the years ahead."
Why does the magazine feel CBS is more vulnerable than its competitors?
"Radio remains one of the company's larger profit drivers," writes FORBES. "CBS RADIO operates 130 stations in the U.S. and offers its audience several formats through the combination of on-air, online and new media platforms. CBS RADIO, in conjunction with CBS-owned TV stations, constitutes about 27% of the company’s stock value, by our estimates. CBS RADIO has lost market share over the past few years, primarily due to divestment of some ratio stations as the company focuses its efforts on larger markets."
FORBES asks, "Can CBS combat PANDORA's momentum with its own Internet radio offering (LAST.FM), or will PANDORA's progress eat into CBS' market share? If CBS' radio market share declines to 6% by the end of our forecast period (vs. our 8% forecast) there could be roughly 5% downside to our price estimate, pushing our number just under market price."
Read the full FORBES report here.
Mark Ramsey Interviews Pandora's CEO
ALL ACCESS partner MARK RAMSEY recently spoke with PANDORA CEO JOE KENNEDY. In a two part interview, he asked: How is PANDORA in cars going to roll out and what will it mean to consumers? How important is ease of use and what is "mean time to music"? In cars, how often do consumers use PANDORA and what needs does it satisfy? How many people are registered today and how much money is PANDORA making? How constraining are tiered bandwidth limits -- really? What would you say to broadcasters who argue there's no business in online radio? Is there a future for PANDORA in spoken word?"
Watch part one here.
Watch part two here.