Pandora Shares Plummet on Sour Fourth-Quarter Forecast
Pandora Shares Plummet on Sour Fourth-Quarter Forecast

Pandora Adds 400,000 In July
Pandora increased its monthly active users to 54.9 million in July from 54.5 million in June. Listener hours increased to 1.12 billion -- up 76% year-over-year -- from 1.08 billion. Perhaps most importantly, Pandora recovered from the dip from April to June (1.1 billion to 1.08 billion) and set a new record for listener hours in a single month.

In addition, Pandora's share of U.S. radio listening grew to 6.13% in July, up from 5.98% in June and 3.51% a year earlier. The company gets its measurements from Triton Digital and has metrics such as "average quarter hour" that are common in the radio business.

Pandora's monthly listening hours have grown 145 million since February. The monthly tallies from February to July: 975 million, 1 billion, 1.06 billion, 1.1 billion, 1.08 billion, 1.12 billion.

Pandora's stock reacted positively to Monday's news, closing up 2.5% to $9.79.
( Pandora press release)

Nashville Is Most-Concentrated Music City
New York and Los Angeles are home to more musicians and music companies, but Nashville ranks first on Metro Music Index by Martin Prosperity Institute researcher Charlotta Mellander (a colleague of Richard Florida, economist and author of "The Creative Class"). Mellander built the index on data from the Bureau of Labor Statistics (which shows concentration of musicians), the U.S. Bureau of Economic Analysis (which has statistics on music and recording industry business establishments). The result is a score that shows the relative concentration of musicians and music businesses within a metropolitan area.

The top three metros were closely bunched together and well ahead of other metros. With the top Nashville-Davidson-Murfreesboro-Franklin TN metro given a 1.0 index, the New York-Northern New Jersey-Long Island metro area scored 0.97 and the Los Angeles-Long Beach-Santa Ana metro scored a 0.96. San Francisco-Oakland-Fremont (0.93) and Seattle-Tacoma-Bellevue (0.80) rounded out the top five.

Keep in mind these scores are relative to the size of the metro area. The Nashville-Davidson-Murfreesboro-Franklin metro area has only 1.62 million people while the New York-Northern New Jersey-Long Island metro area has around 19 million people and the Los Angeles-Long Beach-Santa Ana metro area has 12.94 million people,

If it has its way, Nashville will get more concentrated in the coming years. A stronger country music genre will continue to draw songwriters, musicians and professionals. The city is building more of a reputation as a rock and roll city thanks mainly to Jack White and the Black Keys moving to town. Mayor Karl Dean, who was elected to a second term a year ago, is intent on making Nashville a more dominant music business center.
( The Atlantic Cities)

France To Cut Hadopi Funding
Dark clouds are on the horizon for Hadopi, the agency that enforces France's three strikes anti-piracy law. Last week Culture Minister Aurélie Filippetti said she planned to cut funding to the organization that was created under the previous administration of former president Nicholas Sarkozy. "Financially speaking, 12 million euros per year and 60 employees is [an] expensive [way] to send out a million e-mails," she said.

President Francois Hollande is veering left where Sarkozy veered right. Hollande made a campaign pledge to abolish graduated response programs and instead fight against commercial piracy. Sarkozy's administration was responsible for the law and agency that go after individuals. Last month, France's new government asked former Canal Plus head Pierre Lescure to lead a broad assessment of the country's anti-piracy programs and digital readiness (Canal Plus is owned by Vivendi, the parent company of Universal Music Group).

Fighting piracy in France has the ambiguous results seen in other countries. Hadopi released a study in April that claimed peer-to-peer activity in France dropped 43% in 2011. However, the study acknowledged there had been no indication the drop in peer-to-peer activity carried over to streaming services or download services. The overall French market dropped 3.9% in 2011 with a 25% digital gain unable to compensate for the 11.5% decline in physical sales.

Mere awareness of the law seems to have had as much impact on digital sales as the law itself. A study by Brett Danaher of Wellesley College and Michael D. Smith of Carnegie Mellon University found public awareness of Hadopi caused a 22.5% increase in track sales and a 25% increase in album sales at iTunes in France.

Filippetti says she will announce next month her decision on the Hadopi budget.
( Time)

Correction:
Last Friday's Business Matters "Looking Forward to Live Nation and Warner Music Group's Earnings Releases" erroneously reportedLive Nation's earning report is due out Thursday, Aug. 9 when it is actually due out tomorrow, Tuesday, Aug. 7