Pandora chief financial officer Mike Herring, speaking at the Wedbush 2015 ‘California Dreamin’ Technology’ Consumer Management Access Conference in Santa Monica, CA, December 10th.
There’s nothing worse for a venue than being half-full. The artist is unhappy, they have a half-full room. You don’t sell as many beers. You don’t sell as many tickets obviously – like everyone loses.”
“You increase that 20% and it’s a dramatic difference. And that’s – what Pandora brings to that equation is demand. What we’ve done this for Adezza, when we did this for Rolling Stones – Rolling Stones have been doing pre-sales of their tours forever and usually about 20% of pre-sale allotments gets sold. Pandora sold 100% of the allotment, 55,000 tickets in 24 hours, not because of any other reason other than we knew exactly who wanted to buy those tickets.
“Ticketfly brings a platform to that equation. It brings the footprint. It brings those things together and it brings tremendous value not just to us, of course we want to drive revenue for Pandora and profits for Pandora – we also – it brings tremendous value to the listeners. They know about concerts when they come and they can attend and see music they love. It brings tremendous value to the artist because people show up to their concerts. The venues get a sold-out house. The value chain, the whole value chain raises. That’s what Pandora’s basic philosophy is how do we bring the music industry back. It’s had a tough 15 years.
“I mean Steve Jobs eviscerated the music industry with the launch of iTunes and it’s been downhill ever since. And the download was supposed to save it, that didn’t happen.”
Now on-demand streaming is supposed to save it. We will see if that happens. I think what really needs to happen is we need to think broadly how do we drive engagement overall as a music industry and that message is starting to make sense.
All these things matter in the context of lifting the overall industry because we need the industry to be healthy for Pandora to survive. And we want to – we also make money along the way.
Image by Ben Stanfield, licensed under Creative Common Attribution 2.0 Generic (CC by 2.0). The full, 6-plus page transcript (including the comments related to Steve Jobs) is at Seeking Alpha, here (it’s an amazing site).
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