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That's the questions posed by The Street's Rocco Pendola who, by the way, also claims traditional radio has lost its way thanks to the Internet Pure Play. Here's what Pendola's thinking. Every time a new streaming deal is made, such as the Spotify Eccho Nest marriage or Apple buying Beats or Google's purchase of Songza, Pandora executives publicly and loudly announce it will have no impact on them. Pendola says, "Now more than ever, Pandora is a propaganda machine."
"As pioneers, first movers and disruptors, you would think Pandora would know better. And -- because I know better -- I know that the people at Pandora does indeed know better. They'd better know better. Because, if they don't, I might be right --Pandora could really be screwed."
Pendola says there's no doubt Pandora has schooled everyone, including traditional radio, "which has lost its way." Pendola says Radio's problems have been heavily reported and widely and roundly laughed at but adds that when Pandora executives shoot down all these other services, it is "nothing short of misguided bravado. Arrogance disguised as competence and confidence."
Pendola cites Entercom's decision in Seattle as one of the ways the radio industry is addressing Pandora's competitive advantages. (Side note: If you listen to Pandora you've probably also noticed they are playing more commercials.) Pendola concludes with a bit of advice for the Pandora corporate team. "It cannot operate on the belief that what brought it to the dance will keep it on top. It's this very mindset that caused Apple's iTunes to stagnate, iTunes Radio to fail early on and traditional radio to lose its way."
Read Pendola's full piece HERE and please leave your comments below.
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