As I noted in Tuesday's article, it's time to strike while the iron is hot. Pandora has the scale. It has the ability to target based on location and listening preferences. It needs to build goodwill with the artist community as it attempts to secure an equitable royalty structure. It's in Pandora's DNA to support local music to the greatest extent it possibly can. It has nothing to lose and everything to gain by going all-in before somebody else does.
At this stage, nobody, not Google (GOOG) and not even Apple (AAPL), can make a mark on the Hollywood (and Austin and Nashville and New York music scenes) like Pandora can. But the longer Pandora waits, the more ground it gives up to large players and upstart Internet radio outlets ranging from Spotify to the aggressive and growing Slacker.
It would take one call to a big name artist such as Eddie Vedder (or somebody like him) to create a Pandora-sponsored indie music series in the clubs of Hollywood. These guys absolutely love ditching the entrenched establishment of the concert industry's promotional machine (e.g., Clear Channel, Live Nation (LYV)) whenever they have the chance. To that end, why isn't Pandora on the phone with Another Planet? Another Planet operates right in Pandora's backyard, the San Francisco Bay Area.
Or why doesn't Pandora consider launching it's own concert promotion group?Granted, I'm scribbling on the back of an envelope, but I'm introducing an important strategic step Pandora needs to take. One that requires minimal investment and can generate both quantitative and qualitative impact. While I understand that Pandora succeeds, in large part, because it is so focused, building a stronger bond with an already loyal audience as well as aspiring, emerging and established musicians does nothing but sharpen that focus. Follow @rocco_thestreet --Written by Rocco Pendola in Santa Monica, Calif.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- 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 + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV