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

Twitter's Beating Pandora at What Should Be Its Own Game

Stocks in this article: P TWTR NLSN

NEW YORK (TheStreet) -- Over the weekend, I hope executives at Pandora (P - Get Report) felt shame. Because, within the context of a vexing music industry issue, they should be ashamed of themselves. There's no other way to say it -- Pandora has dropped the ball on big data. And quite miserably I might add.

To best cover the subject, I begin from the end, provide relevant history and fill in the present-day and forward-looking blanks.

In a nutshell, as Wall Street analysts jump on the gee, this stock might double (again) bandwagon a little too late, Pandora should take its press clippings and chuck them in the compost bin. That's the only way to move forward -- to pretend today's your last day and that you're only as good and righteous as your last game.

Begin From The End

Over the weekend, Twitter  (TWTR - Get Report) signed a deal with former Island Def Jam and Warner Music Group top dog Lyor Cohen's company -- 300 -- to leverage the mounds of data the social network produces on listener behavior and preferences. Data that can help everybody from labels to bands to brands harness the enormous power inherent in entertainment's most passionate sector -- music.

Here are a few key excerpts from a Ben Sisario piece in The New York Times on the partnership:

For the music business, Twitter holds a vast haystack of data with no easy way to find the most valuable needles -- like which acts are attracting the most attention, and where ...
The reading of music's digital tea leaves has become a big business as companies like Gracenote, Next Big Sound and Musicmetric have joined traditional players like Nielsen in providing information about music online. But while music is the most popular topic on Twitter -- users discussed it in more than one billion messages last year -- its depths have not been fully plumbed ...

And there's this quote from Cohen:

There was a time not so long ago when we sold music to retailers and they sold to fans, but nobody knew who those fans were ... I've spent most of my life not knowing who the customer is. Isn't that a shame?

Reading the article, particularly those passages, made me want to rejoice and vomit simultaneously.

Rejoice because this is just what the music industry requires. Smart partnerships like this. Fresh tech- and data-driven ways to discover new talent and market music in ways it has never been marketed before.

Vomit because it's an absolute sin -- a sin to those it could better serve, the music it plays, the investors who buy its stock and the people who run its show -- that Pandora allows companies with a sliver of the music data it has to take the lead on what is a sector unto its own in the music industry.

Sisario notes that Twitter users sent over a billion music-related messages last year.

Big deal.

Since its reincarnation as Pandora Internet Radio, Pandora listeners have thumbed songs more than 35 billion times. And that's just a fraction of the data Pandora collects every second of every day.

The role of data continues to emerge. It's about to explode. And, for no good reason, Pandora has been/is letting names such as Twitter, Gracenote and, apparently, according to The New York Times, Nielsen Holdings (NLSN - Get Report) take the lead.

To this end, allow me to be clear -- there's room for multiple players, particularly because each data set is different and has unique (as well as overlapping and confirmatory) value. That's not the knock on Pandora. The knock is that, while others take strides to express the power of data in practice, Pandora, relatively speaking, sits idle ...

which leads to ...

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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!

Markets

DOW 17,672.60 -141.38 -0.79%
S&P 500 2,051.82 -11.33 -0.55%
NASDAQ 4,757.8790 +7.4820 0.16%

Partners Compare Online Brokers

Free Reports

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