Daily: Spotify steps up the challenge to Pandora

Daily commentary

The latest Spotify move is significant in terms of its mounting challenge to Pandora in the US. Pandora is a public company that was one of the first to come to market in the Web 2.0 IPO bubble last January. It was valued at $3 billion despite still being a loss-making enterprise. The company still has a market cap of $1.88 billion.

I like Pandora as a service and have used it for a number of years. It's ability to play music that I like and that represents a coherent genre and mood is amazing. Pandora's strength is in serendipity: mixing music that one truly enjoys together into a playlist that the user doesn't need to contol. It makes for wonderful surprises and music discovery (that can lead to sales and revenue for Pandora). It's format is the true future o...


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