Might as well start comparing them now because in less than a month Clear Channel will unveil a new feature to its iHeartradio Digital delivery application that will be a direct competitor for Pandora. Game on. Pandora President and CEO Joe Kennedy has taken the approach that radio is Pandora's business and his company is transforming the way consumers interact with the medium. Jab. There's no denying the Q2 revenue increase for Pandora was huge. It's also important to note Pandora, as it is today, is still a relatively young business and big revenue jumps are expected from a well-run company. Pandora is still losing money. Again, that's not to take away from the model they've put together. Consumers are into Pandora, there's no doubt about it. With the battle about to enter a new stage in Las Vegas, here's the tale of the tape:
As of Q2
Clear Channel (radio) revenue: $781 million - Plus 4% over year prior
Pandora revenue - $67 million - Plus 117% over year prior
Clear Channel cash in the bank - $1.2 billion
Pandora cash in the bank - $95 million
Clear Channel's net loss in the second quarter of 2011 was $38 million (down from $77 million)
Pandora's net loss this quarter was $1.8 million (up from $1.6 million a year prior)
Clear Channel will hit back in less than a month when it unveils its iHeart radio feature at a small party you may have heard about. On September 23rd and 24th at the MGM Grand in Las Vegas a menu of somewhat talented performers will sing a few of their favorite songs that radio helped make poplular. No doubt, in the audience, consumers from all over the country who made the journey to the desert will be doing something with their smartphone, be it taking pictures of the latest Lady Gaga costume or mocking their friends back home via Facebook or Twitter. Clear Channel will be sure to make that happen.
Pandora's President and CEO Joe Kennedy says "Pandora is personalizing radio and consumers are enthusiastically embracing the dramatically better experience. At the same time, advertisers continue their adoption of Pandora's multi-platform ad solutions."
It all brings back great memories of Vegas, the days of Hagler-Hearns and Sugar Ray Leonard-Roberto Duran, when the fights were real and both sides always put on a great show. Hey fellas, no biting
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