This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Absolutely Horrible News For Pandora

So, now what? What should Pandora do to rectify the situation?

  • Ask your supporters in the House to draft a compromise bill.
  • Apologize for the blog post I referenced in the above-mentioned October article where Tim Westergren calls out how much Pandora pays in royalties to SoundExchange and specific artists. That's where the trouble started. Obviously, Pandora pushed its luck and upset roughly 125 major players.
  • Offer listeners one-year subscriptions to Pandora for half price. Come up with some sort of lifetime option. Pandora One, the platform's subscription option, is consistently one of the top in-app purchases in Apple's (AAPL) App Store. Drive that thing like you stole it.
  • Increase revenue. Don't run more ads. That's always been a bad idea. Find a way to be an e-commerce player. And, as I suggested months ago, side with artists; become an independent concert promoter staging and selling tickets to exclusive Pandora listener-only concerts across the country.

Tim Westergren is a musician. I did not call him before I wrote this article, though I thought about it. I am sure he is sick about what has happened over the last several weeks.

He's likely more sick about being viewed as "anti-artist" (he's not, by the way, not even close) than he is about his business suffering potentially irreparable damage.

On the bright side, it's likely that Pandora will get through this internally because of Westergren and the culture he has created. I don't expect a Zynga (ZNGA)-like exodus because of the respect people have for Westergren and the rest of his competent management team.

That's not a great bright side. But that's what happens when you make grave strategic errors. Things get ugly.

Pandora must act and act fast, making genuine moves to take control of the situation.

Rocco Pendola is TheStreet's Director of Social Media. Pendola's daily contributions to TheStreet frequently appear on CNBC and at various top online properties, such as Forbes.
3 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,079.57 -42.44 -0.25%
S&P 500 1,996.74 -3.38 -0.17%
NASDAQ 4,557.6950 -11.9260 -0.26%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs