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Radio Exec Says "Suckers Invest in Pandora"

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(2/16/2011 4:45:03 PM)   Flag as inappropriate content
I totalally agree with Mary Beth Garber regarding local radio stations versus Pandora. Our company specializes in Generational Marketing and research, and I can tell you that Pandora will never have the appeal to regular radio listeners,especialy the Boomer generation.

There is a place for Pandora, but it's not replacing local radio. It will join into the mix of entertainment. I would like to see the demo's on this, and then I could convert them to generations.

- Phil Goodman
(2/16/2011 3:00:12 PM)   Flag as inappropriate content
I had a comment about this that became a bit long to post here, so I'll leave the link:

- Tom Webster
(2/16/2011 1:19:35 PM)   Flag as inappropriate content
Ms. Garber—your silence is deafening. I understand that you’re probably a busy executive, but please further enlighten us.
- Will Baumann
(2/16/2011 9:14:36 AM)   Flag as inappropriate content
Ms. Garber,

It's obvious you were not at the 2011 consumer electronic show (CES) and you haven't been to Detroit in a while.

Jake Sigal, CEO
Livio Radio

- Jake Sigal
(2/16/2011 4:32:16 AM)   Flag as inappropriate content
Pandora a threat to "traditional" radio? Of course it is. I have friends who already use their computers or smart phones to listen to Internet radio in their vehicles because over-the-air doesn't give them what they want. I also find it so funny that all the "insiders" use the "Jack" format as their measuring stick when I've been doing a wide variety format for decades, a format I was assured by the big time execs there was "no market for" when I first used it on my "Jack On The Radio" show in 1969. No market? If that's the case, then Pandora is on the losing end of the game. Between us, I think America's pretty much ready for variety, and I've got over 42 years of experience to prove it.
- Chief Jack Hawk
(2/15/2011 5:59:34 PM)   Flag as inappropriate content
@Davis--I'm guessing you're not involved with selling radio ads, and don’t use a “so called” smartphone. Am I right?
- Will Baumann
(2/15/2011 5:55:47 PM)   Flag as inappropriate content
Boy, I love radio with my heart and soul, and that's why it pains me when our industry makes damaging pronouncements like this. Putting your head in the sand is not a strategy.

I have tremendous respect for Mary Beth, but she is really hurting radio by dismissing real threats. And Pandora and streaming radio via mobile and the Internet is a very real threat that should be addressed, not dismissed.

It is odd that she makes light of SiriusXm when that company's revenues have grown by $1.2 billion in the past five years. The entire radio industry hasn't grown by $1.2 billion in the past five years; it's contracted by that much. And SiriusXM is now profitable. Pointing to satellite radio as an example of a failed competitor scares me.

I also don't find it consoling by assuming that just because Pandora doesn't do something now it means they can't do something later. We need to consider the possibility that Pandora can both localize their service and add personalized production elements. The Jack comparison is apt. How hard is it to hire a Howard Cogan and take phone calls to integrate with a Pandora stream?

As for the car, my daughter listens to radio via her cell phone with her earphones. She doesn't even care what I put on the car radio any more.

It is important to assess an industry's competition. When a satellite company can take some of your prime talent assets like Howard Stern and generate a profit, it's best not to ignore them. Likewise, when a company like Pandora is growing as fast as it is, it's best not to ignore it either.

Have we all forgotten The Innovator's Dilemma book from 10 years ago? It's still as important today as it was then. The disruption of streaming audio is real. Radio has the assets to truly take advantage of it, but if they just sit back and ignore it, there is a very real danger in being overwhelmed.

- Jim Kerr

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