New Models of Doing Business: Pandora Radio

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New Models Of Doing Business: Pandora Radio As if the music industry has not seen enough change in recent years, Pandora Radio has started yet another music revolution. This time, however, the revolution is not about how the music is stored and collected (LP/CD/MP3 transformation), or how music is purchased (Record Stores/ iTunes transformation), but how we actually listen to music. Pandora Radio has created an amazing technology, which allows users to create and customize their own radio stations that automatically play new and unique songs that cater exactly to the users tastes and interests. Pandora has created a radio station that never plays that bad or annoying song. With Pandora, the user will never have to turn that proverbial…show more content…
In contrast, there exist many intermediaries with the traditional radio business model. Disc Jockeys select the music to broadcast and station managers determine what type of genre and audience to target. With this old way of doing business, satisfying the customer was a never-ending challenge of hit and miss, where ratings were correlated to what was being played. With Pandora, customer satisfaction is inherent in their model. Users create their own stations to listen to, and are constantly customizing stations to tailor to their tastes. The argument can be posited that while Pandora does possess a new high technology and a new way of doing business, the existing technology support network cannot support Pandora—a large portion of radio is listened to people commuting in cars where an internet connection is beyond the normal means of consumers. This is a false assumption. The technology support network is currently undergoing change to meet the demand for internet connectivity anytime, anywhere. Technologies such as 3G and 4G allow devices to connect to the internet anywhere, and Pandora is currently developing players for automobiles, and applications for smart phones have already been developed and launched (Yarrow). Pandora’s effort to allow users to utilize their service anywhere is another genius move of the company (Yarrow). By aligning themselves with the ongoing self-service evolution in
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