The music streaming service Pandora has said that though its revenue is growing, so are its costs at the same time. Pandora, formed in 2000, is one of the earliest music streaming services and is still the largest of these. However, the times have changed significantly with regards to digital music and Pandora does not seem to have kept pace with the times.
Pandora has reported a loss of $85 million for the third quarter which comes to 40 cents per share. This sent the share price in nosedive and it lost 30 percent of the value. The loss is according to the market expectations. The company has been making loss since its inception.
However, the punishment that the stock suffered is the result of the patience limits of the investors having been breached and they appear to have lost faith in the company, especially when there are music streaming giants like Spotify and Apple music in the competition now.
Pandora has 80 million users but only 5 percent of these are paid subscribers. In comparison Spotify has 20 million paying users and Apple has about 6.5 million paid subscribers for its Apple Music service.