"When the Music Stops, Turn Out the Lights"

What meaningful conclusion can be reached regarding the recent acquisition of key Rdio Music assets by Pandora?

Pandora could become the platform that provides the soundtrack in our lives

Is the streaming music industry positioned for change as new entrants like Apple Music join the space?  Will we see further consolidation amongst the players?  We know the stakes are high, competition will undoubtedly increase due to revenue opportunity. Even though Spotify has the largest paid subscription base of all streaming music companies, and enjoys favorable ratings from users, will it be able to continue to compete against the "platform advantage" of Apple?

The Rdio acquisition could boost Pandora's growth by propelling it into international markets enabling it to compete more effectively in the Streaming Music space.  The Streaming Music Index above illustrates that Pandora is continuing to grow in comparison, but growth from Spotify has outpaced that of Pandora - so far.

The recent acquisition of Rdio Music by Pandora signals the company’s desire to continue to evolve its business model.  In addition, Pandora’s recent purchase of Ticketfly could be more than an attempt to diversify revenue streams? Could it be part of an overall strategy where Pandora intends to become the destination for all things music. 

Pandora’s entry into the ticketing space could be designed to benefit the artist. It could also establish Pandora as a greater force in music by shifting their focus beyond the passive listening activities of their users and shift the company’s dependence from advertising revenue to a more enhanced music experience designed around the music lovers lifestyle. Pandora could become an important part of the distribution, promotion and music discovery process on an international level.

The company could have a profound impact on its users and the relationship that each one has with music and Pandora could become the platform that provides the soundtrack in our lives.

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