How the heck can Pandora lose $8m a quarter? Here’s how…..

Pandora has got something very few consumer companies have – a demo that includes the young and old, the affluent and the economically challenged, but most importantly, they’ve locked up the influencers.  Somehow they just can’t seem to make money. Why? my guess is that they dont understand simple ecomonics and have gotten caught up in part deaux – secure investors, grab share,  and monetize later.  Adoption rates are off the charts, now, which is a trailing measure.  Active listeners are up 62%, who thinks that is sustainable? Content acquisition costs are up 9% as a % of sales and represents the difference between a loss and break even.

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