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 “up to $350 million” 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…”