They have to continually refer to the 10 commandments of a successful “freemium” application. Some heavy users also support Pandora Radio these must be rewarded by the way they do business with Pandora Radio.īut they have to be clear about the development of their application. Thus, it must be pointed out that Pandora Radio only penalizes or restrict the use of certain individuals. Also, these heavy users do not contribute to the success of the company. The founder must not be afraid to block the use of heavy users because they eat up a significant portion of the bandwidth. Thus, users are given the chance to subscribe to Pandora Radio for a fixed amount on a monthly or annual basis. After listening for 40 hours the ability to continue enjoying the service can be had after paying 99 cents to purchase a song or to go through the subscription route. Afterward, they can explain that only 40 hours of listening time can be considered as free. It will not hurt if from time to time they issue reminders regarding the cost of the operation. The users must appreciate the fact that they can listen to great songs that appeal to them and enjoy these things free. In other words, they cannot allow a user to abuse the free policy of the organization. Westergren and Kennedy must heed the advice of the junior partner. But they had no choice because they have to make money or the company will be forced to file for bankruptcy. The moment they charge money, there is a possibility that the millions of users will simply look for alternative Internet radio sites. The dilemma was real to those who initiated Internet start-ups. It was time to persuade users to pay for the services that they enjoy instead of relying on the free use of Pandora Radio. It was time to persuade users to become customers. The success of Pandora Radio can be considered bittersweet because millions of users forced them to pay a great amount of money in terms of royalty fees. Although Westergren and company were considered an agreement with SoundExchange this was a reprieve that will last only up to 2015. The law discriminates between conventional radio and Internet radio. Furthermore, Westergren had another problem. ![]() According to the law, all radio stations are required to pay royalty fees to the owners of the song. Westergren should be elated by the fact that millions of listeners are tuned into Pandora Radio. Other radio stations are limited by their format but not Pandora Radio. This design helps explain why Pandora Radio has millions of listeners. The potential customer simply enters a song that he or she likes and then the software is the one to search for songs that are of the same type. Pandora Radio was a revolutionary concept if compared to conventional radio because all types of listeners can subscribe to listen because they do not need to fiddle with their radio to find out the station that they like. In other words, digitized music was broken down into units and categories that the software can then use to develop a special library of similar types of songs. Westergren said that this discovery led him to develop a system of codifying these attributes. It appears that a song has attributes similar to the DNA of an organic cell. Thus, Westergren used his vast knowledge regarding the music business and music theory to develop software that breaks down the attributes of a particular song. In contrast, the founder of Pandora utilized a certain type of software-based on music theory. In the case of Pandora Radio, no such scheme was used. There are radio stations that offer a certain type of music and this particular theme attracted a specific group of listeners. In most cases, radio stations follow a certain theme. In a conventional radio station, there is a disc jockey or a person-in-charge who manipulated music records based on the program or as a result of a request from the audience. Also, Pandora Radio cannot be considered as an ordinary radio station. ![]() This type of activity is not the reason why Pandora Radio became an instant hit among music lovers in the United States. The ability to stream music from one computer to the next is already an ordinary occurrence in cyberspace. It is into this technological and economic backdrop that another Internet start-up called Pandora Radio struggled to establish a profitable position in the market. But in the digital age, it became easy to copy, transmit, stream and share music to those with an Internet connection. In the past, this was not a problem because radio stations are entities that were heavily regulated to protect the interests of artists, composers and the studios that produced their albums.
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