This Day On The Street
Continue to site right-arrow
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!

Why Pandora Blows Apple's iTunes Radio Away

Stocks in this article: P AAPL

This illustration of Pandora's Music Genome Project can help clue him in.

Pandora helped take indie band Bronze Radio Return's career to the next level. But how does this happen? How does the Music Genome Project break a band?

Here's one common example.

One of Bronze Radio Return's singles found its way onto Mumford & Sons radio. That not only means serious exposure, but increased serious exposure in front of the right sets of eyes and ears. Pandora's experiment worked and paid serious dividends -- way beyond royalties -- for Bronze Radio Return. It came about because of the MGP's unparalleled precision.

Full-time, highly-skilled music analysts (musicologists, PhD types, actual musicians, etc.) score every song Pandora inserts into its catalog on dozens of attributes related to each song's musicology.

It's a complex list of variables covering everything from instrumentation to rhythm and beyond into the type of minutia you really need to be a music expert to understand. While Pandora adjusts its playlists to be culturally appropriate and smart, these subjective factors do not influence the MGP algorithm. The music you hear when you listen to Pandora includes, as Cue puts it, "songs that you would really like" and selections designed to help you discover tracks you might like. And it's done song-by-song on the basis of the actual song, not simplistic formulas that only take into account obvious and, on their own, unreliable factors such as genre, era and popularity.

Bronze Radio Return made it to Mumford & Sons radio because the MGP identified one of its songs as sharing many of the same and some attributes similar to a popular Mumford song. In other words, the MGP rated the two songs in close proximity to one another on the basis of the complex structure of the song. That's why, in addition to getting the seemingly obvious tracks on Mumford & Sons radio (say, The Lumineers), you might get the equally as appropriate Bronze Radio Return.

When the MGP identifies relationships between songs, Pandora runs an experiment on a "small" sample of its audience, usually about 1%. That can mean a more than statistically robust one million users or so. Then Bieschke sits back and watches what happens ... in real time.

4 of 5

Select the service that is right for you!

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 17,356.87 +288.00 1.69%
S&P 500 2,012.89 +40.15 2.04%
NASDAQ 4,644.3120 +96.4780 2.12%

Brokerage Partners

Rates from

  • 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