Consumers prefer specialists

Pandora’s stock has taken a big hit in recent weeks due to rumors that Apple is considering entering the Internet radio space. Similar concerns have been raised about Microsoft recently “reentering” the space of Internet radio (actually, it’s already in and has been for years — it’s simply rebranding its less-than-stellarly-successful “Zune Music Pass” as “Xbox Music Pass”), about the fact that Spotify is offering radio channels, and about the possibility of Google competing in the music space.

In all of these cases, I think the alarm is over-exaggerated.

Here’s why: Each…
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Pick a color

One of the big lessons I picked up from the marketing books of Al Ries and Jack Trout — “Positioning: The Battle for Your Mind,” “Marketing Warfare,” “The 22 Immutable Laws of Marketing,” and several others — is the importance of having a color associated with your brand.

A great example is the world of rent-a-cars. The original leading firm in the space, Hertz, has used yellow (with black highlights) for decades. The “#2” firm (and I’m using quotation marks because they’re actually #3, but their marketing angle is that they’re #2 (so they try harder)) is Avis, which picked red…
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Tablet computers are a “disruptive” innovation

If you’ve been to a RAIN Summit in 2012 (Las Vegas, Minneapolis, Dallas, or Berlin), you may have seen my “State of the Industry Address,” in which I discussed the theories of author/consultant Clayton Christensen (“The Innovator’s Dilemma”) and argued that Internet radio is a “disruptive innovation.”

(By the way, the term “disruptive innovation” is thrown around pretty freely nowadays, but, as Christensen uses it, it has a very specific meaning: It’s a type of innovation that starts out worse than existing products in its category, and thus is experimented with but subsequently…
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How Pandora could become a $70 stock (in a few years)

Before we begin today’s regularly scheduled blog post, I would like to point out something important about the Pandora IPO situation that no one seems to have noticed: Except for costs associated with the process of going public, Pandora is profitable — and has been for the past year and a half!

According to the quarter-by-quarter level detail in their most-recent S-1 filing, Pandora was profitable on an operating basis (i.e., approx. EBITDA, and…
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Want to experiment with a new approach to drive times?

According to comScore, about 20% of your listeners now own smartphones. One implication of this fact is that those listeners could theoretically listen to on-demand streams of your programming during their commutes.

This opens up a plethora of potential new opportunities for you!

One possibility, for example, derives from my long-held observation that morning and afternoon drive air talents (on a music station) are doing a four-hour show, yet your typical listener only tunes in for a half-hour or so of it, which means that a…
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