Feed Pandora a few of your favorite artists or songs and Pandora creates a custom music station for you, delivered over the Internet. Listen via web browser, Android, iPhone, etc. Rate songs a thumbs up or thumbs down as Pandora plays them to curate your personal radio station on the fly and improve/customize your mix accordingly. One critical component of Pandora’s success is their ability to deliver completely individualized radio stations (playlists) to us over the Internet, but would Pandora FM broadcast radio stations also make sense?
Pandora FM: why? Listener perspective:
- Am not in front of PC or tablet and need to use my mobile phone for purposes that conflict with Pandora
- Mobile low on battery
- Prefer the Pandora FM mix than the local FM stations (and can’t listen to my personal Pandora station due to reasons like the ones listed above)
- Prefer wider variety mix at times (compared to my personal Pandora stream)
- Want to hear what local people are listening to
- Better quality sound than listening on my mobile or computer
- Better experience listening with a group of people to an FM station
- Want to hear local traffic, weather or news (assumes Pandora FM adds that content)
Local Pandora FM radio stations: what to play?
Each local Pandora FM radio station would play what its broadcast area listeners want to hear:
- Could be an aggregation of all the local Pandora listener playlists
- Algorithms could weight towards artists and songs that show up the most frequently, receive the most thumbs up and/or are trending up at the highest rates
- Pandora could enable us to request certain songs or artists for local FM broadcast via Pandora or other apps (Twitter, Foursquare, etc.)
- Algorithms could incorporate data passively mined from other sources as well, e.g. bands and songs trending on Facebook, Twitter, etc., especially if the data includes location information.
- Different hours of the day could focus on different genres of music
Pandora FM: what is local to each Pandora station?
If Pandora FM 100.7 broadcasts in the Nashville, TN area, then local for 100.7 might be defined as a mix of:
- Playlists from Pandora users that live in Nashville
- Pandora users that are currently in Nashville (determined using location data automatically gathered from Pandora’s mobile app, or from listeners choosing to check in to Pandora, or checking in to apps such as Foursquare and Facebook).
- Listeners that tell Pandora that they are currently in Nashville and listening to Nashville’s 100.7 (tell Pandora via Pandora, Facebook, Foursquare, Twitter, web, text, email, etc.).
This would likely result in different, customized mixes in different hours, e.g. if Nashville has a heavy commuter population, then 100.7 might have a very different music mix during the day than at night.
Pandora FM: why? Pandora perspective:
- Improve Pandora product
- Reach more people
- Sell more ads, including local advertising
- Build better data on user base
- Set the stage for getting into local events, potentially very lucrative for Pandora
- May be able to offer more customized mix in future with technology and regulatory changes in digital radio, software defined radio, spectrum distribution, etc.
Pandora FM: concerns, unknowns?
- Competencies associated with running an FM station and potentially a local ad sales force may be too much of a distraction or too far from Pandora’s core to invest in (though Pandora likely run these differently than today’s FM station). Of course doesn’t need to be a complete Pandora buy or take-over, Pandora could partner with current FM stations in full or partially, e.g. Pandora-powered blocks of time throughout the day, and could do similar for local ad sales in terms of partnering w/ others, offering their own self-serve ad buying/placement capabilities, etc.
- Hard to get the mix right – skews too much towards “hits” when using aggregated data and listeners prefer stations that focus solely on certain music genre
- Overall business model – don’t know how Pandora pays royalties or licensing rights today – would that change for broadcast radio?
- State of current market on buying frequency or existing stations? Assume available at a decent discount but that’s just a guess, perhaps it is seller’s market right now.
What do you think? Would you listen to a Pandora FM station in your area? Does it make sense for Pandora? Will we ever listen to Pandora local FM radio stations?
Note: just using Pandora as an example, as they seem well positioned in this area, but of course any company could try similar. Similarly, focused on FM radio, but other options such as satellite radio may be viable.
