Pandora exiting from Australia and NZ

Pandora’s co-founder has stepped down, triggering a strategic refocus solely back onto their home US market. This means that the internet radio platform is pulling out of the only other 2 markets they operate in – Australia & New Zealand. Mumbrella reported Pandora saying they …”would wind down the service for (Australian & NZ) listeners over the next few weeks”.

Our take

Consumers are choosing on-demand audio platforms (like Spotify & Apple Music) over Pandora’s radio-like, curated offering. Recent audio streaming failures in Australia (Guvera, Now Music, Mog) questions the commercial models being used with streaming, especially in the face of ever growing content costs. Australian consumers demand the same product experience as our European & American counterparts. But in a country of only 24 million, what are the best commercial models that amortise costs & deliver revenue growth? For this market it may mean striking a balance between advertiser supported and premium “ad-free” subscriptions but arguably platforms are struggling to find that sweet spot.

David Lodge

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