Pandora to close Australian operations within the month
Music streaming service Pandora is closing its doors in Australia after five years. Staff were told on Tuesday, with the office to shut within the month.
The service will be axed for Australian listeners “over the next few weeks”.
So now it’s Pandora’s turn, how long before Spotify shuts it’s doors as it continues to bleed red ink, there is not one streaming service anywhere making money and only Apple’s deep pockets keep their service a float.
Something has got to give, the current streaming business model is obviously unsustainable, the music labels need to sit down with current and future providers and work this out otherwise piracy will fill the void as I can’t imagine younger people going back to CDs.
Feeling for the amazing people I worked with in Australia
Er, Spotify is about to IPO and TAYLOR SWIFT is back so not sure you’re right.
Yes, Taylor Swift is a solid business model
I really do miss Rdio.
Sad to see in terms of a good service that was offering a slightly different music experience compared to it’s rivals in OZ. No doubt a victim of circumstances playing out back in the US mothership.
I also really miss Rdio. The application was beautiful. Mobile, Desktop, web. All much much nicer than the others. I was hoping Pandora, after buying Rdio, would do something good with it… But it just never happened. And now this.
Quick, someone buy Rdio back off of them and get it going again!?
The business model of music streaming is really difficult to make work… bulk of revenues are consumed by variable licensing costs. Pandora missed the market with the rise of on-demand, but that aside, the core economics never added up, hence the focus on diversifying revenue from ads & subs. Ad funded never paid for itself… Subscription content models are gaining momentum and while Spotify continues to burn $$, alongside Apple they’re becoming the dominant global service which will likely mean increased prices for consumers… which in reality is the only way the industry becomes profitable (that or someone else subsidises it for the consumer as is occurring with telco bundles).
Business is business I suppose, but there goes all my built-up playlist preferences and I’m left chasing the remainder of this year’s Pandora One subscription.
A real bummer.
I really liked Pandora, listened to it every single day for hours. I will miss it!