This Changes Everything at Pandora

One of the more impressive revelations in Pandora's quarterly report last week was the dramatic uptick in paying subscribers. Music fans willing to pay up for Pandora One more than doubled over the past year to top 2.5 million with 700,000 of those coming on during the first three months of this year.

This is not a big number compared to its more than 70 million active listeners. Most of Sirius XM's 24.4 million subscribers are paying subscribers. Spotify attracts a smaller total audience than Pandora but has more more than twice as many premium accounts. Google rolled out All Access this month exclusively as a premium platform.

The market for premium radio is heating up, and in this video longtime Fool contributor Rick Munarriz explains why getting customers to pay up at Pandora is more important than just the subscription revenue.

Cracking open Pandora's box
Pandora has won millions of devotees among music fans but few supporters on Wall Street. The online jukebox seems to be redefining the way we consume music, a transformation that's only likely to grow. But high royalty rates and competition from all corners threatens to silence the company. Can Pandora translate success with its listeners into a prosperous business model that will deliver for investors? Learn about the key opportunities and potential pitfalls facing the upstart radio streamer in The Motley Fool's premium research report. All you have to do is click here now to subscribe to this invaluable investor's resource.

The article This Changes Everything at Pandora originally appeared on Fool.com.

Longtime Fool contributor Rick Munarriz has no position in any stocks mentioned. The Motley Fool recommends Google. The Motley Fool owns shares of Google. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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