It appears that Pandora Media is losing out to other competitors in the music streaming service.
The company’s third-quarter earnings reports showed mixed results.
Pandora Media listed 73.7 million active listeners in the third quarter or a decrease of 4.2 million active listeners from the 77.9 million recorded in the same period a year ago and a drop for the third consecutive quarter.
The company also reported that listener hours were at 5.15 billion, down from 5.4 billion reported in the quarter a year ago.
Pandora Media’s stock fell more than six percent in after-hours trade, and according to CNBC, the company’s shares have struggled this year, dropping more than 44 percent in value so far.
The good news is that Pandora recorded 5.19 million total subscribers in the quarter, representing a 29 percent year-over-year growth and beating Wall Street expectations.
Wall Street had expected the company to report 5.04 million subscribers, StreetAccount said.
Pandora’s subscriptions brought in $84.4 million in revenue, the company said.
Pandora Media’s Premium subscribers, meanwhile, crossed the one million mark last month.
Pandora launched its Premium subscription in March to compete with Spotify and other music streaming services.
Subscribers would $9.99 monthly to search for and play whatever they want, whenever they want — and the service has a bit of Pandora’s secret sauce mixed in.
Users who make a new playlist with the Premium service can ask Pandora to fill in any gaps using the same technology behind its popular Internet radio service.
Pandora’s “Music Genome Project” analyzes songs according to 450 attributes and uses the data, along with what the user tells Pandora what he or she prefers, to play music tailored for him or her.
Meanwhile, Pandora CEO Roger Lynch said in a statement that the company would use its “strengths to be part of their listeners’ live.”
“We have significant scale, distribution, and products that deliver a superior listening experience. We will leverage these strengths to become a more integral part of our listeners’ lives and reinforce our position as the definitive source for audio advertising.”
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