Pandora Stock Falls as Media Goes Gaga Over Spotify Launch
-- Were Pandora investors reacting to Spotify's U.S. launch when the company's stock dropped immediately after the markets opened Thursday morning? Pandora opened at $18.12 and bottomed out at $16.65 a couple hours later.
It's certainly possible that the big debut of Spotify impacted the market's perception of Pandora. Spotify could be considered a competitor to Pandora even though it is an on-demand service (lean forward) and Pandora is an Internet radio service (lean back). Assuming people listen to a fixed amount of music, time spent with Spotify is time not spent listening to Pandora. And it's fair to assume some consumers will consider subscribing to either one service or the other (but not both). Thus, Spotify may eat a bit into Pandora's subscription numbers. It's not a big threat, but the threat exists.
But maybe the market realized its overreaction. The stock climbed throughout the day and was actually up $0.01 at one point before closing down 0.78% at $17.79. And it's entirely possible that once people actually read about or experienced Spotify, they realized its mediocre radio function probably isn't going to peel away too much of Pandora's share of listener hours.
Then again, the fact that yet another analyst opened coverage of Pandora with a "sell" rating -- this time with a $12 target price -- might have resulted in some profit-taking by investors who bought in the $12 to $13 range in mid-June.
Spotify TOS: Live It Up For First 6 Months
-- Wondering about the limitations on Spotify's free, ad-supported service? The terms of service states the free service will have "no monthly cap on listening hours or a cap on number of plays of a unique track during the first 6 months following creation of your Spotify account but thereafter [will have] a cap of 10 listening hours per month and a cap of 5 plays per unique track." In other words, live it up for the first six months.
Converse Studio May Pay Off In MP3 Usage
-- As Billboard reported earlier this week, the Converse-funded Rubber Tracks recording studio is now open for business in the Williamsburg neighborhood of Brooklyn. The studio is giving free studio time to bands and is asking relatively little in return (although that depends on your point of view). It's definitely one of the most unique branding initiatives seen in the music business, and it's destined to get a ton of attention.
The registration form is currently online. After the standard name/address fields, the artist is asked to name and describe the band. There is a field for band websites (home page, Facebook, SoundCloud, iTunes, YouTube, Vimeo, etc.).
Additional questions include: "How many songs do you want to record?" "What is your goal for these songs?" "How far along are these songs?" and "Which genre fits your sound?"
One can assume Rubber Tracks wants to hear songs that are well beyond an embryonic phase (no songwriting in the studio, please), and the terms of service specify that selected artists will be able to use the studio only "for a set allotted time." The site says that should be an average window of one to two days per band.
But if you read the fine print, you'll see Converse is getting something in return. Even though artists own the recordings that result from time at Rubber Tracks, the company may ask artists for the right to offer the music as MP3 downloads and audio streams "for a defined period of time," for a promotional "free with purchase" sampler, and for "industrial" purposes. Converse also gets to use the music "internally forever" (presumably that covers everything from in-office play to use in company PowerPoint presentations). In addition, Converse will own the rights to any photos and videos it takes of bands in the studio.
Flurry: Android Loses Developer Support to iOS
-- Flurry, a mobile app-selling network, believes the iPhone's Verizon debut and the iPad 2 launch are behind a recent drop in developer support for the Android platform. The company gauges developer support by the number of developers that download its platform-specific software developer kits. From the Flurry blog:
"Studying the numbers, it's readily apparent that Android has lost developer support to iOS. Specifically, Android new project starts have dropped from 36% in Q1 to 28% in Q2. Overall, total Flurry iOS and Android new project starts grew from 9,100 in Q1 to 10,200 in Q2. Of note, this drop in Android developer support represents the second quarter-over-quarter slide, which follows a year of significant, steady growth for the Google-built OS."
( Flurry blog)