For years, Pandora has maintained a steadfast following, and now tops the list for most loyal listeners. According to a recent study by IFPI, Pandora is the number one station in 14 of the top 15 local radio markets in the United States.
The music streaming site topped Apple’s iTunes which came in at number two, while Google Play came in at third.
Most music streaming sites allow varying degrees of customization, but Pandora shines in its level of individual personalization through its Music Genome Project, providing a unique customer experience. The Music Genome Project lets professional musicians and analysts listen to music and manually classify up to 450 different traits that describe the song, called “genomes.” Unlike other streaming services that use computer algorithms for classification, Pandora’s use of human sorting creates an inherently more personalized experience.
Pandora listeners are then able to choose a station based on an artist, song, or genre, and the service will cycle through similar songs that have shared genomes. Once streaming, listeners can provide real-time feedback to the service using a thumbs-up or thumbs-down for a particular song.
Pandora is a subscription-based service, and a relatively inexpensive one comparatively. The basic Pandora platform is free, but the ad-free Pandora One is available for $4.99, roughly half of what many competitors ask. The company currently has about 3.3 million subscribers worldwide.
Pandora builds brand loyalty not only by providing an inexpensive, personalized customer experience, but by making consumers feel comfortable on the platform. Unlike other streaming services, Pandora does not pressure users to buy music or attempt to lead them down a path to purchase. The company, however, does not thrive on subscription revenue alone. Recently, it reported that it derived only 19% of its second quarter revenue from subscription fees, and the rest is from advertising dollars.