Major Components of Pandoras Business - Essay Example

Internet radio services – Pandora is involved in the provision of music that the customers like by providing access to customized radio stations. Customers can be able to submit their favorite song or artist and the Pandora software builds a playlist of similar songs. This will be able to test customer satisfaction which the service will use for future selections.

The same musical “DNA” – this database provides a recommendation engine that suggests music with similar attributes in that a visitor who asks for music from the 90s will also be given old favourites. The same also applies to the latest music.

As the customers are listening to their favorite songs they also get an opportunity to buy songs or albums online.

With the introduction of mobile software for smartphones whereby customers can not only enjoy Pandora services from their computers at work or home but through their smartphones.

It also offers advertising and premium subscriptions where companies can put advertisements to target certain people. Customers can also buy subscriptions for a few dollars a month to omit the ads (Noske, 2012).

The high cost of operating and other costs such as inconsistency costs means that Pandora does not have full market control. In time, Pandora will not enjoy market advantages since it will have less control of the market due to the evolution of the mobile era.

Not many people can be able to download music in places where they don’t have computer access services.

More of the music downloaded is normally done illegally without the knowledge of the artists or the music labels. This has turned into a normal type of crime. Most people download songs for free and see no harm caused to the artists and record labels who normally incur losses for their work.

Artists and record companies who are behind the making of the music normally don’t receive any royalties when their songs are downloaded for free.

With time, mobile revenues will improve since the world is moving to a more digitalized era. This means that the company should sell its premiums directly rather than relying on 3rd parties who are normally associated with other costs.

With the introduction of Pandora's smartphone services, many people can be able to download music straight from their phones when they don’t have access to computer services.

The copyright law which is the body protecting artist’s work from being copied without their authorization should intensify and rise with good legislation which would see a reduction in piracy. The legislation is good for the music industry since Pandora can pay the artists and record companies (Cnet.com, 2012).

Pandora pays hundreds of millions to artists and labels. At least the royalty rate is fair and reasonable of which both parties benefit. Pandora can make a profit, and the artists and music labels also generate some income.

Record labels are things of the past. Music labels and online stores should be able to pay artists much more fairly. They should not rely on producing CDs since they are things of the past and the world is changing. Hopefully, more and more artists will bypass getting record contracts and go directly to these music labels and online music stores to get their music distributed.

Music labels and online stores should increase the level of competition by coming up with products and services which are innovative. This would increase the number of customers hence increasing revenue generated.

Music labels and online stores should be able to make deals with those who own rights to the music. Through this, they can be able to negotiate between the right holders and the distributors and bargain with each other if they like.

The growth in popularity of web radio among the public is continually becoming an important source of revenue for the music industry. Such growth only promises the industry success even to the extent to rival bigger new players such as Apple.

Radio services tend to be increasing in popularity as it attracts more customers since it provides a significant means of income. With the entry of new and better players in the market such as Apple, the level of competition will be wanting.

They could negotiate to see a bill that would see the increment in the rates the radio services pay for the services.