Pandora Paid Over $1,300 for 1 Million Plays

Re:Pandora Paid Over $1,300 for 1 Million Plays by hohead on Wednesday June 26, 2013 @03:45PM (#5948520)

Interesting analysis.

Based on their cost of $0.02 cents per listener hour, I wanted to calculate how many hours per day my $36 yearly payment equates to (ignoring their operational costs):

($36 / $0.02) = 1800 hours per year

1800 hours per year = 4.93 hours per day

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Re:Pandora Paid Over $1,300 for 1 Million Plays by sliverstorm on Wednesday June 26, 2013 @04:04PM (#5948632)

Sounds like the pricing structure all works together very well, then. 5 hours per day sounds like a good point which plenty of people can easily eclipse, but the majority will not, keeping the service profitable.

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Re:Pandora Paid Over $1,300 for 1 Million Plays by Retric on Wednesday June 26, 2013 @05:06PM (#5949059)

Licencing is hardly there only cost.

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Re:Pandora Paid Over $1,300 for 1 Million Plays by sliverstorm on Wednesday June 26, 2013 @05:10PM (#5949082)

Yes, but they said it was 50% of revenues. I believe Pandora is profitable, so the sum of all other costs must be less. This means that the breakeven point is actually somewhere between 2.5-5 hours. 5 hours per day is not a magic number- I think 4 or 3 also sound perfectly fine, based on the usage patterns I see.

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Re:Pandora Paid Over $1,300 for 1 Million Plays by spullara on Wednesday June 26, 2013 @05:18PM (#5949152)

Pandora is actually operating at quite a big loss:

http://finance.yahoo.com/q?s=P&ql=1

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Re:Pandora Paid Over $1,300 for 1 Million Plays by tsotha on Wednesday June 26, 2013 @06:26PM (#5949547)

I don't see much value in an analysis that ignores operational costs.

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