Pandora programs music based on a complex algorithm based on songs' musical "DNA." Which means that if you tell Pandora you like the Ronettes' "Be My Baby" it will find other songs that feature "rock & roll roots," "a subtle use of vocal harmony," "acoustic rhythm piano," etc. But Spotify says it is relying on the "social graph," so it will find music that people who like the Ronettes also like.. And that's seven screens' worth of "etc." But, bottom line, what Kafka points out is critically important. While the barriers to enter Internet radio might be soft, it takes years to present it the way Pandora has. And you do not simply build the necessary infrastructure or scale to meaningfully penetrate an establishment like the radio advertising industry overnight. Beware of analysts like Greenfield. They need to spend more time assessing the work a company actually does as opposed to wasting away their days refreshing the Apple App Store rankings and shooting YouTube fan videos. At the time of publication, the author was long FB and P. Follow @RoccoPendola
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