SiriusXM’s Pandora acquisition shows how fast the streaming market is growing

SiriusXM parent company Liberty Media wants to be the sole winner on Internet radio.

Liberty is one of two large take-outs that have decided to take Pandora for $ 3.5 billion. At the end of the deal, SiriusXM and Pandora will be the first clear evidence that the streaming market will not end in two races, PC, Mac or iPhone and Android, with monthly monthly audience of 160 million . Digital music supports what many musical industry executives have long believed to have, with multiple winners in various formats, such as on-demand streaming and Internet radio.

Local businesses are already streaming on demand. Apple Music is now the top streaming service in the United States, surpassing the active user Spotify last month. According to CEO Tim Cook, Apple Music is likely to claim Japan, too. Spotify owns Europe with intense competition in competition from Apple and Deezer. And Tencent Music has more than 600 million monthly users in China and 17 million subscribers in three music services.

Even smaller players like Tidal are trying to exploit space, a service recently launched in Uganda targeting Africa. You can try 10.5 million users through carrier transactions in markets where big players are almost neglected.

So where do Pandora and SiriusXM come from? This version of Pandora's recent on-demand service is about the power of online radio where Pandora and Sirius XM dominate the landscape. Pandora is a free service with 70 million listeners, and SiriusXM is a paid service with 36 million users. This combination provides a user base that surpasses all users except Spotify in the streaming market and is much less competitive on the radio. SiriusXM will mimic the conversion strategy of Spotify, which allows the company to convert 50{1e17b7ec7cf0b7230c525c20baf6bfcba4dca28b5d59de759a771dd6c2d285e5} of "engaged" users in the ad-supported free tier to premium services.

Sirius X's main competition is iHeartMedia, the premier radio station. Bankruptcy. (Liberty Media has tried to purchase iHeartMedia but is still interested in securing the company's stake.) However, SiriusXM and iHeartMedia are competing in many ways, but each has a well-defined audience and 90{1e17b7ec7cf0b7230c525c20baf6bfcba4dca28b5d59de759a771dd6c2d285e5} of Americans still listen . Please connect to the radio at least once a week. Even if Liberty Media acquires iHeartMedia, there are examples of coexistence with SiriusXM and Pandora for many years.

Liberty Media continues to grow its service by combining Pandora's online radio market with the likes of Howard Stern and Kevin Hart, simultaneous audio broadcasts from major sports leagues, and Sirius X. . SiriusXM has demonstrated the ability to expand the paid subscriber base while at the same time generating the benefits Pandora must make to maintain its partnership. If Sirius can make the most of Pandora's 70 million users, he can continue to own space between full-fledged streaming services and terrestrial radio for some time.

Many people considered this when customized streaming first came to the United States. One solution for music consumption is the right solution. But companies such as Amazon have introduced a new strategy for subscription models, Pandora has kept the market in a lot of places, and there are still a lot of people who are consuming traditional radio. Every week. While streaming has been a huge help to the music industry in general, streaming is quickly moving to a variety of streaming markets such as smart speaker dedicated services from Amazon, automotive services such as SiriusXM, online radio and on-demand music. Everyone succeeded in their success.