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Morgan Stanley Says Pandora’s Future Is Fading

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A new Morgan Stanley assessment of Pandora paints a bleak picture of the company’s future. By 2017, rising royalty costs and plummeting stock prices could force Pandora to seek โ€œup to $350 millionโ€ in financing. Pandora might never become profitable, let alone make it to 2021.

What could that mean for other streaming platforms? Interestingly, Morgan Stanley analyst Benjamin Swineburn posits that a Pandora disappearance could signal an uptick in paid streaming subscribers:

“…if not for Pandora, some material percentage of its 80 million active listeners would pay $10 per month for subscription services…”

via DigitalMusicNews

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