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One reason Freemium works for Pandora is because, according to an employee I've talked to there, the advertising revenue from a free user can be nearly as much
by nowarninglabel 11y ago
One reason Freemium works for Pandora is because, according to an employee I've talked to there, the advertising revenue from a free user can be nearly as much or even greater than the 4.95/month from a paying user. Granted, I don't have a source other than the person's word and I doubt Pandora reports on their revenue split that way.
- jdmichal 11y agoPandora properly embraces the philosophy, "If you aren't paying, you're the product." If you can't monetize free users, then they are a liability, not an asset. Especially when they are eating up resources like support time. I have no idea why free users would even have access to the same support as paid users, as seems to have been the case here.
- jeffmould 11y agoI can believe this. I have a free Pandora account and usually listen to it for 1-2 hours almost every day. In that time period I hear between 5-10 ads on average. I am not sure how much Pandora makes on each of those ads, but that is potentially around 200+ ads I am exposed to monthly. Plus with Pandora an advertiser should have a better than average chance their ad is heard/seen since the user is forced to hear/see the ad in order to continue listening in most cases.