Two years ago, Pandora was bought for $3.5bn. It's since lost over 10m users. – Music Business Worldwide

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It was one of many music business’s greatest tales of 2019: In February that yr, satellite tv for pc radio big SiriusXM introduced it had accomplished the acquisition of Pandora in a $3.5 billion all-stock transaction.
On the time, Pandora remained a predominantly free, non-interactive music streaming service, however had launched two nascent subscription tiers: the $4.99-per-month Pandora Plus, and the $9.99-per-month Pandora Premium.
The latter was as soon as billed by Pandora as a Spotify killer. (Pandora’s ex-CEO, Tim Westergren, even boasted that Pandora’s $9.99-per-month platform can be the music streaming market’s first “true premium product.”)
But two years on from the second Sirius dedicated a multi-billion greenback sum to purchasing Pandora, the US-only music service’s person base continues to shrink quickly.
In response to SiriusXM’s just-released Q2 2021 results, some 55.1 million month-to-month energetic customers (MAUs) have been partaking with Pandora within the three months to finish of June this yr.
Persevering with a long-running decline in Pandora’s MAUs, that 55.1m determine was down by practically a 3rd (-32%) on Pandora’s all-time MAU peak of 81.5m in This fall 2014.
It’s additionally down by practically 11 million on the platform’s MAU depend (66.04m) on the shut of Q1 2019, shortly after Sirius acquired Pandora.
How swift has Pandora’s person discount been? Pandora’s own website still suggests that it gives a “highly-personalized listening expertise to roughly 70 million customers every month”.
That was true three years in the past. Now it’s a full 15 million out.
Not that any of this has damage SiriusXM’s personal prosperity.
For one factor, regardless of that ongoing shrinkage in customers, Pandora’s complete promoting revenues really climbed 82% year-on-year in Q2 2021 (following the Covid-hit turbulence of 2020) with $383 million generated within the quarter.
That $383m income determine included off-platform outcomes resembling Pandora’s AdsWizz enterprise, and was additionally up on Pandora’s pre-pandemic efficiency: the platform generated $306 million from adverts in Q2 2019.
“Together with Pandora, complete income at SiriusXM in Q2 2021 stood at $2.16 billion, up 15% on the $1.88 billion generated in Q2 2020.”
One other set of numbers value maintaining a tally of: Pandora’s “self-pay” (i.e. not bundled into automotive purchases) subscriptions enterprise.
In Q2 2021, the online variety of Pandora self-pay subscribers crept up by 118,000 throughout Pandora Plus and Pandora Premium.
The platform ended the quarter with 6.51 million self-pay subs, versus 6.25 million within the equal quarter of 2020.
Pandora’s complete revenues – throughout promoting and subscription – in Q2 2021 stood at $516 million.
That was up on the $336 million generated by Pandora in Q2 2020, and the $441 million generated by the platform in Q2 2019.
Together with Pandora, complete income at SiriusXM in Q2 2021 stood at $2.16 billion, up 15% on the $1.88 billion generated in Q2 2020.
The SiriusXM platform itself generated $1.64 billion in Q2 2021, up on $1.54 billion within the equal interval of final yr.
One other standout metric for Pandora is its complete advert supported listener hours in every quarter.
In Q2 2021 – as simply introduced in Sirius’s newest monetary outcomes – Pandora attracted 3.03 billion ad-supported listener hours.
That was down on 3.29 billion within the prior yr quarter, down from 3.49 billion in Q2 2019, and down from 3.86 billion in Q2 2018.
Pandora isn’t the one music-specific streaming service that SiriusXM takes an curiosity in lately, in fact.
In February 2020, SiriusXM made a $75 million minority equity funding into SoundCloud.
In 2018, Pandora became the exclusive ad sales consultant for SoundCloud in the USA.
Earlier this yr, SoundCloud signed as much as sell advertising in 14 European territories by way of SiriusXM’s AdsWizz.
Pandora acquired international advert gross sales platform AdsWizz in a deal worth $145 million in Might 2018.Music Enterprise Worldwide
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