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Pandora CEO on Future of Internet Radio

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    Pandora CEO Joe Kennedy on the company’s business strategy and growth.

  • Duration 5:23
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-- -- pandora celebrating its one year anniversary from its IPO on Friday congratulations despite increased competition the company is looking towards growth the stock.

Huge jump today look at add up 7%.

Joseph Kennedy is the CEO Ken -- he joins us out of Fox Business exclusive Joseph congratulations.

The stockpile lot of those social media stocks of course had a good day today.

And and I got to tell you I love pandora listen to it all the tidal -- that you.

-- those songs -- to my personal purchases extraordinary however let me just get the one criticism.

Particularly from investors -- say why they put out more hats because regular.

And our net terrestrial radio you have about 22 minutes of ads for our you have much much less than that are -- thinking of increasing your ad time.

Why actually David -- well we're pleased with the -- that have load that we have an earlier level that low that enables us to meet our target long term business moral.

On the desktop.

We've already demonstrated the business model that we shared with investors as we brought the company public a year ago.

And so -- this story for pandora is not some massive increase in have load -- that will gradually increase over time.

But they key to achieving our target business model has already been demonstrated on the -- top.

And it's really demonstrating that on mobile as well that is our our dominant focus and the result will be a great experience for the consumer.

But show your costs are rising more quickly than your revenues so.

How do you start to prove that you can actually be cash flow positive what step -- you have to take to get there.

I -- I think the key is really to look at the difference between the desktop and the mobile environment we've been on the desktop for six years we've developed that market.

We actually are exceeding the long term business model on the -- stop.

-- mobile is very fast growing consumers are reaching an and an enormous rate.

The -- market there is more -- ensor it's gonna take some time but we believe that mobile is every bit as monetize -- as we've already demonstrated on the -- -- Okay -- were speaking up for the admit maybe it's just because we love that bad here of course you're you're in in this sales yourself there with a cart public.

Local sales a lot of folks say -- you pandora could do more to take advantage of the local markets I know you war.

Increase your noble your number of -- sales reps but.

You should you be in more markets -- do you have -- plans to expand even more there.

We do have a tremendous opportunity we now represent just under 6% of all radio listening in this country.

I'm meeting were as large as the largest radio station in most markets animal will almost certainly be the largest one.

In most markets by and hear that creates the same kind of local radio advertising opportunity frost in every market.

That traditional radio has had and so we are expanding the number of markets in which we -- -- has we've got an initial start.

In most of the top ten and we see a lot of opportunity there are as we as we move forward chillier in this unique.

Position of having been on the car side working for Saturn -- but then also now -- being on the radio side getting into a whole bunch of different car companies and making sure that when the models are delivered to people.

Pandora's already in there now the big question becomes I need you to put on year.

Sort of big picture glasses and tell me do you think that eventually.

Internet radio will completely push out terrestrial radio and cars the -- -- what we saw -- now you don't -- cars anymore but they have cassette players.

They don't put cassette players in cars anymore and they're barely putting in discs at this point now everyone's going to satellite radio or what you do.

Will terrestrial radio leave the car the auto industry.

I'm not sure I'm.

And it will become -- -- I think Internet radio will be a major major force in their car and in radio generally.

In the history media getting -- -- am and FM FM didn't completely kill.

AM but it it it it certainly took a lot of share and AM had to -- -- is self in terms of what kind of content focused on.

And I think that's what we'll probably see with terrestrial radio have to refocus the kind of content.

It spends its time on and I think music certainly and perhaps other -- -- really migrate.

And overwhelmingly to Internet Hillary.

Joseph but finally a management question for -- days -- anything from your experience -- selling cars and marketing cars that.

That you can transfer over to the work that you're doing it -- -- Why you know as as well essentially it's been an enormous asset to kind of be able to navigate the auto industry we now have.

Virtually all of the world's auto makers.

Integrating -- right into there for future vehicles -- certainly been.

Tremendously helpful -- and the have a sense of kind of how auto makers think about their consumers and I think the you know our -- goal kind of consistent with -- -- part question.

Is really have pandora side by side with you know I am FM and accent and we think that's a great opportunity for us down the road.

We'll be watching it all I -- -- -- the stock down about 17% over the past year but.

They have tripled some of their growth elements and some other metrics -- we're watching it closely -- until Tim Westergren founder reset hello had a many times on the program.

-- well thanks -- -- asked Joseph Joseph Kennedy -- -- -- saying you know what we.

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