"Heading into the report, I am not nearly as bullish, but you must consider my perspective. I own Pandora for the long term. What happens tomorrow matters, of course, but it's very unlikely that anything I hear tomorrow will shake me out of the stock."
CompetitionMany Sirius XM ( SIRI) permabulls like to argue that the company has no real competition. Some go so far as to say Sirius XM enjoys a monopoly because it is the only satellite broadcaster of record. That's an absurd argument.
"iHeartRadio boasts reaching 10 million registered users. I should hope it has. Clear Channel has over 800 radio stations promoting this app. Online, the trick is to reach that number without being aided by huge amounts of promotional time. (Spotify is at 10 million, with no radio ad support.)"To get to where it has, Pandora has had to endure attacks from Clear Channel and the rest of the terrestrial radio lobby. Dardis continues:
"If the radio industry is to remain relevant it needs to create items of relevancy. Instead, what we have is a continuous stream of denying there's a problem, and even more evidence of staying the course."And there's additional evidence of an entire industry running scared. The more terrestrial and satellite radio brands Pandora inferior, the more it attempts to emulate it. iHeart Radio is little more than a Pandora knock-off, and Sirius XM's Mel Karmazin plans to introduce some form of "personalized radio" later this year. Competition exists, no doubt. Some of it, like Spotify and iTunes, is complementary, while other examples, such as iHeart and Sirius XM's forthcoming features, are complimentary.