Pandora Media Inc (NYSE:P) lost 2 million subscribers and resultant aggregate$48 million within the first quarter of 2015.
The online music streaming sensation has held the crown for quite some time now. It has not been an easy task especially considering the tough competition from similar online streaming services such as iHeart Radio and Spotify. The going seems to be getting tougher as completion seems to be getting tougher especially with new entries making their way into the market. Tidal streaming service that is backed by Jay-Z is one of the newest additions to the online streaming scene.
Such additions mean that it will probably not get any easier as competition becomes stiffer. However, it does not necessarily have to be worse considering the fact that each streaming service brings its own unique features that appeal to different audiences.
Pandora Media Inc (NYSE:P) revealed that they had been experiencing major losses in the number of subscribers that saw about 2 million subscribers dropping their subscription. The drawbacks have also led to losses in revenue with the company reporting about $48 million in losses. By the number of March 2015, the number of registered subscribers was reported at 79 million as compared to 81.5 million subscribers by the end of 2014.
Despite the unfortunate turn of events, the company is not worried. This is because the online streaming service experiences a very unusual phenomenon. Some of the subscribers usually drop their subscription by the beginning of every year. Most of them later get back towards the end of the year. Additionally, new subscriptions usually pick up pace towards the third quarter of every year.
It is not a guarantee that the peak and off-peak phenomenon will continue. This year the losses were a record high compared to previous years. Despite the shortfalls, Pandora reported that the annual expected profit figure is $1 billion. It is not clear how the company will achieve such an ambitious amount considering the current uninspiring performance.
