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This makes sense. Another way to back into the figure: Pandora spent $82M on content according to the most recent 10Q, with 4.18B listener hours. That implie
by jcampbell1 13y ago
This makes sense. Another way to back into the figure:
Pandora spent $82M on content according to the most recent 10Q, with 4.18B listener hours. That implies a cost of $0.02 cents per listener hour. A million plays is roughly 62500 listener hours, which implies a content cost of $1250.
- deleted 13y ago[deleted]
- hohead 13y agoInteresting 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
- sliverstorm 13y agoSounds 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.
- Retric 13y agoLicencing is hardly there only cost.
- sliverstorm 13y agoYes, 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.
- spullara 13y agoPandora is actually operating at quite a big loss: http://finance.yahoo.com/q?s=P&ql=1 http://finance.yahoo.com/q?s=P&ql=1
- tsotha 13y agoI don't see much value in an analysis that ignores operational costs.
- arantius 13y agoSorry but .. "$0.02 cents"? Do you mean "$0.02", or "2 cents" or two hundredths of one cent, or something else? Is this Verizon writing? ( http://verizonmath.blogspot.com/2006/12/verizon-doesnt-know-dollars-from-cents.html http://verizonmath.blogspot.com/2006/12/verizon-doesnt-know-... )
- jcampbell1 13y agoI meant $0.02, aka 2 cents. Sorry about that. It is an easy mistake to make at 2pm in the morning.
- darth_aardvark 13y agoDo you mean...2 am?
- cloverich 13y agoAnd... that was the joke :)