I think Pandora will go back into heavy losses if they raise money. I love Pandora as a service, but it's a far cry from being a Netflix. ( a long time paying customer of both )
Pandora's revenue is threatened by so much, RIAA contracts, pirating, advertisings race to zero ( via google ), etc...
They know this, and they will need to reinvent themselves to be worth anything. As a result I predict they will blow the 100 million on radically new business methods. Considering the success rate of music companies... I am worried.
I hope they spend it on advertising. Their product rocks, i think they just need wider exposure. They also claim exclusive providence to being able to authentically post jobs in the bay area looking for "rock stars" to help out their company ;)
That would be a pretty bad sign. I sure as hell wouldn't invest in a company that's going to turn around and spend the money they raise on ads. They should be building a war chest and their biz dev and legal teams to get some leverage on the labels. Regular radio pays $0 of their revenue to labels, Pandora pays $.50 of every $1.
Radio stations pay annual fees for the license of broadcasting music, which is why stations have to report every song they play (this data is sampled to divvy up royalty payments to labels and artists.)
Pandora's revenue is threatened by so much, RIAA contracts, pirating, advertisings race to zero ( via google ), etc...
They know this, and they will need to reinvent themselves to be worth anything. As a result I predict they will blow the 100 million on radically new business methods. Considering the success rate of music companies... I am worried.