Pandora Rocks – A Major Internet Streaming Force
An Emerging Problem for Broadcast Radio

Jacobs Media’s new Technology Survey VI reveals growth and acceptance for Pandora – and a strong new competitor for terrestrial music stations.

In a newly-released web survey of more than 26,000 rock radio listeners from around the U.S., Pandora is emerging as the runaway winner among Internet radio music services.

Jacobs Media President Fred Jacobs comments, "Radio broadcasters may think the competition is the radio station down the dial. Pandora is emerging as the premier Internet radio station, winning new listeners and fans as streaming and mobile devices become popular. It is a threat to terrestrial radio."

Of “streamies” – those who listen to Internet radio – nearly four in ten (37%) tune in Pandora. Among the long list of streaming radio stations that respondents could choose from, Pandora is the clear favorite, showing a strong four-year listening trend.

Mobile devices have enabled Pandora to expand its audience. CEO Tim Westergren has said that, “Our future is going to be more mobile-centric than I had even thought – and sooner.” This is substantiated in Tech Survey VI, as one-fourth of those who listen to Pandora indicate doing so on a mobile device. In fact, smartphone owners – especially those who have an iPhone or Android handset – are especially likely to listen to Pandora. And they are four times more likely to access Pandora on their mobile phones.

Additionally, Pandora has momentum. Of those who listen, four of every ten (43%) say they are tuning in more often, while 15% already listen frequently. Once again, owners of iPhones, Androids, and BlackBerry devices are listening to Pandora more frequently.

Pandora compares very well to terrestrial music stations. More than half of those who listen to Pandora (55%) say that it is better than most commercial radio music stations, while only 5% say it is worse.

Are there any negatives associated with Pandora? Of those who listen, nearly four in ten (37%) have no complaints, but one-fourth (25%) say the service does not allow them to skip enough songs.

Nearly one-fifth of Pandora listeners say they miss hearing real people and local information. A similar percentage knocks Pandora for simply becoming boring to listen to after a while, limiting how long they can use the service (without paying a fee), or that it is not convenient to have to listen to on a computer or mobile device.

For FM radio broadcasters, Pandora’s ascension should be a message that a new form of competition – not another radio station in the market – is making serious inroads. Here are some additional thoughts:

• By providing the ability to listen on a wide range of devices, Pandora’s ubiquity enables rapid audience growth. Pandora is especially present in the fast-moving mobile space, and smartphone owners are listening in rapidly rising numbers.
• Pandora’s ability to provide choice (and fewer commercials) improves its perception as a strong option over terrestrial music stations.
• In a sea of infinite music choice on the Internet, Pandora is emerging as the leader, in much the same way that YouTube and Facebook have dominated their respective spaces.
• Where Pandora comes up short is its inability to provide a local context, aided by the presence of personalities. However, given budget cutbacks and reshuffling of on-air lineups in order to be more competitive with the new Arbitrion Personal People Meter (PPM) ratings, terrestrial radio may be losing that apparent edge over a global streaming competitor like Pandora.

About The Jacobs Media Tech Survey VI

Jacobs Media’s Technology Web Survey VI is the largest such study of its kind, fielded in mid-February/early March 2010, among more than 26,000 respondents across 78 different Rock-formatted stations. It is the sixth annual survey in the series, conducted among rock radio listeners who are predominantly members of station email clubs. Participating stations represent Mainstream / Active Rock, Classic Rock, Triple A, and Alternative outlets in markets around the U.S. Representative stations are in markets as large as Los Angeles and Chicago, and as small as Mendocino (CA) and Evansville (IN).

This is a web poll, and cannot replicate all radio listeners or even all rock radio listeners. As with all Internet-based research studies, the results reflect only those who chose to participate in the survey, and do not necessarily represent the views of all rock radio listeners in the country. Still, the 78 radio stations that invited their listeners to take the survey are a broad cross-section of Rock stations, from large and small markets, as well as those that play the newest rock music and those that play only Classic Rock.

Jacobs Media is a Detroit-based media research and consulting firm, specializing in radio, television, and new media.

For more information, contact:
Fred Jacobs
Paul Jacobs