How Pandora Got Back in the Game by Changing Its Business Model

 

In business there are two types of companies; those that strive to innovate on a continual basis and those that find themselves left behind by the more aggressive competitors. In recent years, the online music streaming service Pandora found itself being left behind by more innovative competitors like Spotify, Apple Music and Tidal.

As this recent Fast Company feature explains, Pandora was the company that effectively kick started the music streaming revolution, cultivated more than 80 million users and it was able to hammer out contracts with the major music labels that allowed it to stay out of the rights-pulling kafuffles that have waylaid some of its biggest rivals.

The company has not been as successful in maintaining its profitability. The company’s high licensing fees and stagnating subscriber numbers left the company operating at a perennial loss. However, with a new CEO Tim Westergren at the helm, the company is now redefined its business model and brand.

Through recent acquisitions, the company now offers labels and independent artists’ robust analytics about the performance of music online and will soon offer users the ability to purchase concert tickets. With these two new revenue streams in place, Pandora is now once again striving toward innovation, and very possibly, newfound success.

In what ways do you need to redefine your own business to keep current with today’s trends and models. Find inspiration in Pandora’s story and apply it to your own.

Read the full article here: http://www.fastcompany.com/3058719/most-innovative-companies/inside-pandoras-plan-to-reinvent-itself-and-beat-back-apple-and-sp

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