Skip to main content

Spotify doesn't appear to be slowing Pandora's growth

Spotify doesn't appear to be slowing Pandora's growth

/

Research shows Pandora and Spotify are growing at traditional radio's expense

Share this story

album record red2
album record red2

Pandora, the web's top radio service, continues to record big growth in the number of subscribers and hours of usage. At the same time, subscription service and rival Spotify has also reported spikes in the number of paying customers. The web players are likely benefitting at the expense of traditional radio, according to research firm NPD.

NPD said that a survey of 7,600 US respondents showed that in the fourth quarter last year, ad-supported and subscription-based online music services grabbed 23 percent of the average weekly music listening time for people between the ages of 13 and 35. That's up from 17 percent during the same period a year earlier. In comparison, NPD's data showed that listening at traditional radio broadcasts, which is now 24 percent, fell 2 percent. NPD's information on the online services is consistent with the numbers reported last week by the Recording Industry Association of America.

The more interesting question is whether Spotify is snatching away listeners from Pandora

It's been pretty clear for some time that online streaming would at minimum give traditional radio a run for its money. The more interesting question is whether Spotify is snatching away listeners from Pandora (full disclosure: Spotify stole me away). Pandora is an ad-supported radio service and Spotify is an on-demand subscription service but it's unlikely listeners need both. They are definitely competing for listeners. Last month, Spotify reported 24 million active users and said it had added 1 million paying subscribers in the first two months of the year. At this early stage, however, Pandora doesn't appear to be giving much ground to Spotify.

NPD released its fourth-quarter data yesterday, but this morning Pandora released internal user metrics for the month of March. Those appear to bolster NPD's general theme that listeners are flocking to the webcaster. Pandora said the number of active listeners for March totaled 69.5 million, a 36 percent increase from the 51.2 million active listeners it had during the same month in 2012. Pandora also said that its share of total US radio listening for the month was 8.05 percent, up from the 5.73 percent it posted a year ago.

Pandora doesn't appear to be giving much ground to Spotify

This may seem like a two-horse race, but the competition has just begun. Apple is still the dominant music distributor and music industry sources say iTunes is closing in on deals with the labels to launch a "Pandora-killer." Google and Beats by Dr. Dre, the makers of the popular headphones, are also reportedly working on their own subscription music services. It might be worth keeping close tabs on this sector as the landscape is likely to shift dramatically in coming months.

Today’s Storystream

Feed refreshed Sep 24 Striking out

E
External Link
Emma RothSep 24
California Governor Gavin Newsom vetoes the state’s “BitLicense” law.

The bill, called the Digital Financial Assets Law, would establish a regulatory framework for companies that transact with cryptocurrency in the state, similar to New York’s BitLicense system. In a statement, Newsom says it’s “premature to lock a licensing structure” and that implementing such a program is a “costly undertaking:”

A more flexible approach is needed to ensure regulatory oversight can keep up with rapidly evolving technology and use cases, and is tailored with the proper tools to address trends and mitigate consumer harm.


A
Youtube
Andrew WebsterSep 24
Look at this Thing.

At its Tudum event today, Netflix showed off a new clip from the Tim Burton series Wednesday, which focused on a very important character: the sentient hand known as Thing. The full series starts streaming on November 23rd.


A
The Verge
Andrew WebsterSep 24
Get ready for some Netflix news.

At 1PM ET today Netflix is streaming its second annual Tudum event, where you can expect to hear news about and see trailers from its biggest franchises, including The Witcher and Bridgerton. I’ll be covering the event live alongside my colleague Charles Pulliam-Moore, and you can also watch along at the link below. There will be lots of expected names during the stream, but I have my fingers crossed for a new season of Hemlock Grove.


A
Andrew WebsterSep 24
Looking for something to do this weekend?

Why not hang out on the couch playing video games and watching TV. It’s a good time for it, with intriguing recent releases like Return to Monkey Island, Session: Skate Sim, and the Star Wars spinoff Andor. Or you could check out some of the new anime on Netflix, including Thermae Romae Novae (pictured below), which is my personal favorite time-traveling story about bathing.


A screenshot from the Netflix anime Thermae Romae Novae.
Thermae Romae Novae.
Image: Netflix
J
Twitter
Jay PetersSep 23
Twitch’s creators SVP is leaving the company.

Constance Knight, Twitch’s senior vice president of global creators, is leaving for a new opportunity, according to Bloomberg’s Cecilia D’Anastasio. Knight shared her departure with staff on the same day Twitch announced impending cuts to how much its biggest streamers will earn from subscriptions.


T
Twitter
Tom WarrenSep 23
Has the Windows 11 2022 Update made your gaming PC stutter?

Nvidia GPU owners have been complaining of stuttering and poor frame rates with the latest Windows 11 update, but thankfully there’s a fix. Nvidia has identified an issue with its GeForce Experience overlay and the Windows 11 2022 Update (22H2). A fix is available in beta from Nvidia’s website.


A
External Link
If you’re using crash detection on the iPhone 14, invest in a really good phone mount.

Motorcycle owner Douglas Sonders has a cautionary tale in Jalopnik today about the iPhone 14’s new crash detection feature. He was riding his LiveWire One motorcycle down the West Side Highway at about 60 mph when he hit a bump, causing his iPhone 14 Pro Max to fly off its handlebar mount. Soon after, his girlfriend and parents received text messages that he had been in a horrible accident, causing several hours of panic. The phone even called the police, all because it fell off the handlebars. All thanks to crash detection.

Riding a motorcycle is very dangerous, and the last thing anyone needs is to think their loved one was in a horrible crash when they weren’t. This is obviously an edge case, but it makes me wonder what other sort of false positives we see as more phones adopt this technology.


A
External Link
Ford is running out of its own Blue Oval badges.

Running out of semiconductors is one thing, but running out of your own iconic nameplates is just downright brutal. The Wall Street Journal reports badge and nameplate shortages are impacting the automaker's popular F-series pickup lineup, delaying deliveries and causing general chaos.

Some executives are even proposing a 3D printing workaround, but they didn’t feel like the substitutes would clear the bar. All in all, it's been a dreadful summer of supply chain setbacks for Ford, leading the company to reorganize its org chart to bring some sort of relief.