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Why doesn’t Pandora have audio ads?

logo_pandora1.jpgDoes anyone know the answer to this? I’ve been an avid Pandora listener since day 1 and wondered when they would either go to:

  1. A subscription model
  2. Have audio ads between songs similar to regular commercial radio.

Thankfully, Pandora is the best thing since the last best thing and hasn’t done either of those. I have to wonder though, are those ad placements around the audio player turning the kind of profits they would hope? I mean, my typical user experience is to launch the player, go to a new tab or window, and forget about the Pandora interface all together. The only time I return is usually to vote a song up or down and then move back to what I was doing. I guess the advertisers can hope that my brief interaction is enough to hook me.

Where I think they are definitely making their money is via referral fees from iTunes or Amazon where people buy music. I know that I often hear a great song, hop over to Pandora, and ad it to my Amazon wish list for a later date. So it’s not an immediate revenue stream for either Pandora or Amazon, but a postponed one.

Any others with similar experiences and/or interactions?

Sphinn

1 Comment so far

  1. Libby Hemphill June 22nd, 2007 9:02 pm

    You asked the unspeakable question. Man, I hope Pandora survives, especially in the face of the stupid Copyright Royalty Board rate hikes. I listen to Pandora whenever I work from home, and I can’t tell you the last ad I remember even noticing.

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