Why Is Pandora Worried About Its Content Costs?
- Pandora isn’t profitable with the royalty rates it pays currently, which means that it needs to grow its revenues faster than content costs to reach a profitable state
- For every dollar spent on content, the amount of revenues generated should increase in the future
- However, the exact opposite is happening in the near term, despite the contribution from the ticketing business (no associated content costs) projected for 2016 and 2017
- In 2015, Pandora generated over $2 for every dollar spent on content and this figure is estimated to come down to $1.70 by 2017
Have more questions about Pandora? See the links below:
- By How Much Have Pandora’s Revenue & EBITDA Increased In The Last Five Years?
- How Has Pandora’s Revenue Composition Changed In The Last Five Years?
- What’s Pandora’s Fundamental Value Based On Expected 2016 Results?
- Can Pandora End The Year On A Strong Note After Solid Q3?
- Is SiriusXM Paying The Right Price For Pandora?
- How Will Subscriber Growth Drive Pandora In The Second Half Of 2018?
- Can Subscriber Growth Drive Pandora’s Q2?
- Spotify Has Seen A Big Rally, But Still Faces Some Challenges
- How Much Can Pandora Benefit From Snapchat Partnership?
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