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Pandor A Successful Radio Service Essay

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Pandora is one of the internet’s most successful radio service. It has over 250 million registered users and around 80 million active listeners. Will Glaser and Tim Westergren started the radio service in 2005, providing users a brand new way to stream music. The station allows users to select music based on the artists they like and using an algorithm it also creates a station that plays music related to the artist or genre (Lauden & Traver, 2016, p. 97). Pandora uses a Freemium business model to generate revenue and attract more users. The model provides users access to free basic features and they also have an option to pay $36 a year to access premium features. Pandora is in direct competition with Spotify, Tidal, and music industry giant, Apple Music. The case uses Pandora as an example as it did a great job adapting to the changes in the music industry. The company effectively changed its business model as time changed to retain its users and stay in business (Lauden & Traver, 2016, p. 98). Our analysis studies the systematic and cost-effective changes Pandora made to its business strategy to gain success. It also discusses the value proposition the company has to offer; as well as compares the success and failure of companies (MailChimp and Ning) which adopted the same freemium business model (Lauden & Traver, 2016, p. 100). To conclude, the analysis explores the main factors businesses need to take into consideration before they decide to use a freemium model.

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