Pandora

Pandora Radio is an automated music recommendation service and custodian of the Music Genome Project available only in the United States. The service plays musical selections similar to song suggestions entered by a user. The user provides positive or negative feedback for songs chosen by the service, which are taken into account for future selections.

While listening, users are offered the ability to buy the songs or albums at various online retailers. Over 400 different musical attributes are considered when selecting the next song. These 400 attributes are combined into larger groups called focus traits. There are 2,000 focus traits. Examples of these are rhythm syncopation, key tonality, vocal harmonies, and displayed instrumental proficiency.

The Pandora media player is based on OpenLaszlo. Pandora can also be accessed through many stand-alone players, such as the Roku DVP (formerly Netflix player) Reciva-based radios (from companies like Grace Digital, Sanyo, and Sangean), Frontier Silicon-based connected audio systems, Slim Devices, and Sonos product(s). On July 11, 2008, Pandora launched a mobile version of their software for the Apple iPhone, iPad, and iPod Touch through the iTunes App Store. Pandora is also available for Android phones (such as the Motorola Droid), BlackBerry platforms, WebOS (used on the Palm Pre and Pixi), and Windows Mobile devices. Pandora was the provider for MSN Radio until MSN discontinued their internet radio service on June 18, 2008. A modified version of Pandora has been made available for Sprint Nextel.

The service has two subscription plans: a free subscription supported by advertisements, and a fee-based subscription without ads. A free account user may reach the streaming limit of 40 hours per month, and continue unlimited streaming by paying $0.99. There are also advertisements in "Pandora Mobile" for mobile phones and the "Pandora in The Home" computer appliance. Most users choose the free subscription.

As of March 2010, Pandora had 700,000 tracks in its library and 48 million users who listened for 11.6 hours per month on average.

In May 2010, Pandora was named in Lead411's "2010 Hottest San Francisco Companies" list. In January 2011, Pandora met with bankers to consider a possible $100 million IPO. The company officially filed with the SEC for a $100mm IPO on February 11, 2011.

During the first three months of its 2011 fiscal year, Pandora reported $90.1 million in revenue with a $300,000 loss.

Limitations

Pandora serves users in the United States. Initially this was enforced lightly, by requiring a U.S. ZIP code at registration, but since May 3, 2007, Pandora has blocked non-U.S. IP addresses.

The Vista sidebar gadget does not affect the listening limit. Rewind or repeat is not possible. Until May 2009, six skips per station were allowed per hour (up to 72 skips every 24 hours); giving a "thumbs down" response, or a "don't play for a month" response, count as "skips". On May 21, 2009, the skip limit was altered such that it counts total skips from all stations with the limitation of twelve total skips every 24 hours (an average of one skip every two hours). If a listener gives a song a thumbs-down or "don't play for a month" after the limit has been exceeded, the song will continue to play; it's only after the song has completed that it becomes subject to the listener's restrictions. This limit was not applied to the Vista gadget. Originally, this was determined per account, but has since been determined per IP address.

Play of a single artist is limited. Pandora provides similar music, not a play-on-demand service.

As of 2009, the mini player is only available with Pandora's subscription service. Free accounts include advertising. These include simple interruptions, with the ad listed on the stream; advertising skins, which do not interrupt the stream; and Java popup ads. The Vista player has no ads and does not have the listening limit. Listening to Pandora on mobile devices does not have the listening limit.

The mobile application does not offer an "I'm tired of this song" option, nor the ability to correct an accidental rating submission.

Mobile devices

The Pandora Mobile for BlackBerry application is limited to AT&T, Sprint, Verizon, T-Mobile, Boost Mobile, and U.S. Cellular U.S. carriers, but visiting the Pandora website directly from other providers' BlackBerry users have been successful downloading the fully-operational application. Likewise, the Windows Mobile client is limited to a select number of handsets, however the installer is available from 3rd party sources and works fine or with only minor display glitches on most devices.

Other features

Pandora Podcast, a musicology show updated every few weeks in the form of a podcast. It is hosted by Kevin Seal of the band Griddle. Each show is based around a specific music topic, and features guest musicians and Pandora experts who normally analyze the music featured on the Pandora website.

A Facebook application developed to allow users to put their Pandora radio stations on their Facebook profiles.

Pandora released a sidebar gadget for Windows Vista and Windows 7. This player retains the original skip limit, has no ads, and does not affect the hourly listening limit. However, many of the features (such as about the artist or adding to the station directly) are not included. Originally, an ad for Netflix was featured on the bottom of the player, but it has since been removed.

Pandora can be played on home CE devices such as Roku and Blu-ray players. Many HDTVs can also stream Pandora.

A Pandora app can be downloaded via iTunes. It retains the original skip limit as well as having no interruptions (although "sponsored links" appear at the bottom) and does not affect the listening limit.

Royalty developments since 2007

In 2007, a federal panel agreed with a SoundExchange request and ordered a doubling of the per-song performance royalty that Web radio stations pay to performers and record companies. Under this scheme, internet radio would pay double the royalty as satellite radio.

Because of recent Copyright Royalty Board rulings that increase fees and ask for licensing guarantees, the Pandora service is no longer available in countries other than the United States. These rulings affect all U.S.-based Internet-based radio stations (terrestrial radio is not affected).

As of July 2008, Pandora is in talks with major music labels regarding royalty issues to allow a return to the European market. Costs remain a concern because of European royalty standards and a low demand for paid music services.

In 2008, the founder of Pandora stated that the company may be on the verge of collapse.

On September 30, 2008, a bill was passed by the U.S. House and Senate to allow sites like Pandora to continue negotiations with SoundExchange into 2009.

On July 7, 2009, Pandora announced that an agreement had been reached regarding the royalty issue, which would significantly reduce the royalty rate, making it possible for Pandora to stay in business. Also announced was that free listening would be limited to 40 hours per month, but can be extended to unlimited for that month for USD$0.99. "The revised royalties are quite high," the company's blog notes, "higher in fact than any other form of radio". The extended listening fee differs from "upgrading", which also disables advertisements, increases the bitrate to 192 kbps, and provides a dedicated music player (as opposed to listening through browser). This service, known as "Pandora One", costs $36 and is billed annually.