Tim Westergren of Pandora Radio Harvard Case Solution & Analysis

Pandora Radio is at a crossroads. Founder Tim Westergren just said known VC, get rid of their unprofitable customers to get their costs, but Westergren is not sure that such action is in accordance with the business model of the company. Pandora Radio is the largest online music stream site, and its rapidly growing user base loves free customizable music stream to support the advertising model. Pandora has to pay a royalty for every song streamed, and there are other variable costs that scale linearly hours consumed, but took no steps to limit the amount of heavy use and the most loyal users. Can Pandora make its model work when a significant percentage of users make it lose money? This video is 9:45 minutes can be used to interrogate the case; Westergren tells part of the story and the key issues facing the company and the details of the results limits their top people "Hide
. by Willy Shih, Halle TECCO Source: Supplement 10 minutes of video. Publication Date: 01 May 2010. Prod. #: 610714-VID-ENG

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