A good service but poor obtain English language the english language espaol Reviews top categories more categories car tech cell phones desktops digital cameras home audio laptops printers tablets televisions forums appliances camcorders cell phone accessories e book readers this you may like games gear gps hard drives storage headphones home video access to the internet monitors mp3 players networking wi fi peripherals software wearable tech web hosting You're here:News latest news mobile startups a step ahead internet media security privacy business tech crave apple microsoft politics law tech culture blogs video photos rss Download windows software program program mac software applications ios apps android apps the download blog Cnet tv most fashionable new releases products tech shows how to always on cnet on cars cnet update googlicious next big thing the 404 xcar How to appliances computers home theater photography privacy productiveness security smartphones tablets web how to video Deals today's deals deals marketplace blog Log in join facebook schedule options log in join cnet sign in with Facebook schedule options Pandora Jewellery my profile log out Pandora, a good service but poor outlay of money pandora, the online radio station and music ideas service, went public today and brokers were getting frothy.But the has too little going for it to justify investment. Courtesy of-Greg sandoval June 15, 2011 12:22 evening PDT Pandora most likely web's most popular and beloved music services, and smart investors shouldn't go anywhere near you're able to send stock. Wall street was bullish on pandora today but the business $2.6 billion assessment doesn hold up under close scrutiny. Shares of the profitless radio service began trading today on the lse as part of an initial public offering, the most advanced technology play with a questionable business model to test the public equity markets. In day trading, pandora, which trades underneath the ticker symbol p, was up 28 for each to $20.37 a share however began to level off.Investors began pulling back not long afterwards and the stock closed the day at $17.42, Up 8 pct.To be able to bloomberg, pandora accessible 14.7 million shares yesteryear at a price of $16 a share, Giving enterprise a valuation of $2.6 billion dollars.Pandora isn't worth $2 billion here is why: The way pandora works is that the company's 80 million users choose a common artists and musical genres and the oakland, calif.Based company delivers songs online based on those choices.Pandora offers an ad supported service that is provided for free to users but limits them to 40 hours of free listening per month.Another system, categorised as pandora one, costs $36 annually and offers unlimited commercially produced free listening. Since many of the users choose the free of charge service, promoting is vital to pandora.As of yet, unfortunately, the company doesn't appear to to be valuable at drawing ad dollars.In documents pandora filed with the stock options and exchange commission, freebies saw $119 million in ad revenue for fiscal year 2011, or 87 percent of total pay.That's more than twice the ad revenue pandora saw the prior year, but isn't to cover costs, that happens to be also growing. (We'll get to many of these later. ) The wall street journal outlined yesterday that one likely indication that pandora is struggling to sell ads is that users frequently hear the same ads.Another is that only 1 percent of listener hours are about ads, compared to brick and mortar radio, which stimulates about 20 percent.The journal noted that mobile ads are less lucrative and the proportionate amount of music pandora delivers to portable devices rose from 1 percent in 2009 to 60 percent last quarter. Another obstacle is that pandora has failed to tap into local advertising http://www.lowreyart.co.uk/pandora-beads.html effectively.According to music business sources, pandora executives have complained that the company will not be able sell the kind of ads to, articulate, local Car motorcycle shops, department shops, and other local companies that are the bread and butter of traditional radio broadcasting. For pandora to slice off a piece of foreign exchange trading, it would have to snatch away share from hundreds of local radio stations a fair distance and their individual ad sales teams, who established relationships with local advertisers over decades. When you speak about fixed costs, this is when pandora's stock really begins to look dicey.In fact, pandora makes up soundexchange, the performance rights group that collects music royalties from online radio and satellite services. "For our fiscal year ended the month of jan 31, 2011, we incurred soundexchange related content acquisition costs comprising 45 percent of our total revenue, pandora documented in sec filings.That's not it.The legal rate, is usually set by congress, is scheduled to go up a wide range of year until 2015.One can find estimates that pandora will pay half of total revenue to soundexchange for fiscal 2012. "If we are not able to reach a new agreement with soundexchange, pandora composed,"Our operating costs may very much increase, which could harm our finances and inhibit the implementation of our business plan, So what does a tenth of a penny per play cost pandora more than a year?Laurie anderson, a soundexchange speaker, broke it down in this manner:Pandora allows consumers ad supported service 480 hours per year of free play(40 weeks x 12 months).She announced if a user listens to 15 songs an hour, this is roughly the same as 7, 200 songs each year.She told me the 2011 rate pandora pays is a"Pureplay webcaster level"Connected with $0.00102 per spin and rewrite.Assuming all these users max out their 40 hours of free tuning in each month, this means each costs pandora $7.35 each and every year.