Hook, Line and Sinker

There is a debate raging about the validity of Pandora’s audience stats that has begun to seem like a pretty coordinated effort on the behalf of some large broadcasters. It seems to have begun on stage at RAIN Summit Orlando during David Field’s keynote

English: Illustration of Pimephales promelas, ...

when he said Pandora’s claim to have 7% of all radio listening was false. Soon after, Bob Pittman said the same during a speech he made, and most recently Rich Bressler from Clear Channel said the same thing on a financial call. in response to more recent announcements from Pandora that their share is now up to 8%.

I’m questioning the wisdom of spending so much time discussing the competition. The thing that I find most ironic about all of this is that they are using public forums to disparage Pandora By comparing the total of ALL LISTENING TO AM/FM RADIO to Pandora. Which only lends credibility to Pandora! Whether their share of all listening is 4% or 7%, it’s a big number compared to the entire AM/FM listening universe. I cringe every time I hear someone make the comparison, it’s such an ill informed strategy. I’ll bet the folks at Pandora are delighted. In fact they just released a new report and said their share is now 8%! That rose from 7% so quickly that I wondered if Pandora is actually baiting broadcasters to gain more publicity.

The reality is that Pandora wanted to be measured by Arbitron all along, and it was some big broadcasters that pushed Arbitron hard against doing that.

Of course, a better strategy for broadcasters is to build out their own platforms, creating innovative ways to distribute their content and forge lasting relationships with their listeners, and then spend time talking about those platforms rather than contributing buzz factor to Pandora. That’s the stuff that advertisers want to hear and the market wants to invest in.

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