Broadcast radio isn't the only market ready for disruption. Internet radio company Pandora unveiled on Tuesday a business-to-business product in conjunction with brand experience service DMX.
Pandora for businesses costs $24.95 per month plus the cost of a DMX media player. Stations can be personalized for each location or set up to cover multiple locations. Businesses can subscribe to Pandora at the DMX website.
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"Businesses have been asking us for years to offer a commercial solution for Pandora," Executive Vice President of Business Development and Corporate Development Jessica Steel in a statement. "Music plays a central role in enhancing retail and service environments. Now all businesses, from national chains to local dentist offices, can personalize their brand experiences the same way that people personalize their individual experiences on Pandora."
As a leader in its category and a disruptive force in the radio business, Pandora carries big expectations. It needs not only to increase its share of at-home and mobile listening, but it needs to develop new markets. And the business market is just as ready for disruption as was the broadcast radio market..
Pandora is not without competition in the business market, however. Its new service will compete with in-store media providers such as Mood Media, which acquired Muzak in March, and PlayNetwork, as well as satellite radio company Sirius XM. DMX, Pandora's partner in this product extension, also provides experiential branding that includes in-store music programming.
But while the higher-end, bespoke programming solutions of Mood Media and PlatNetwork probably won't be affected by Pandora's new service, the low end of the market is far more exposed to new competitors. Pandora could do very well here. It has high name recognition and benefits from familiarity with its easy-to-use interface.
Shares of Pandora (NYSE:P) were down slightly to $15.17 in early Tuesday trading. The news may not have impressed investors, although the market's sentiment is difficult to read when renewed threats of a financial crisis in Greece are pummeling most stocks. But investors should take note: its entrance into the business-to-business market shows Pandora is thinking beyond its original consumer market. And it shows the company is wisely looking beyond consumer advertising for revenue growth.