Pandora Media (NYSE:P)

CAPS Rating: 1 out of 5

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Player Avatar joshmessages (< 20) Submitted: 4/29/2013 1:50:36 PM : Underperform Start Price: $13.82 P Score: -53.56

High royalty fees along with new competition on an almost monthly basis makes the 'mostly free' business almost impossible to profit from.On the free side there is IHeartRadio with seemingly less adds, HD listening, and straight forward free listening with limited skips.On the pay side there is Rdio and Spotify which dominate the space and are both growing surprisingly fast.In the middle there is Pandora which doesn't seems to know whether it wants to be a free service or pay service. Additionally, there is Google/youtube and Apple which are about to break into the industry with better business models. Each separately could make Pandora irrelevant - espescially Apple with it's iTunes and iPhone user base. There is no road to profit for Pandora.

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