Pandora was one of the first to enter the music business online introducing an internet radio service for free only a couple years after iTunes was started by Apple and enjoyed a strong debut when it went public.
However, things have changed since then.
Any advantage Pandora had as one of the first in the business has all but faded away, as its rivals including Apple Music and Spotify have become the biggest forces in the industry, in which habits of consumers change quicker than to the Billboard record charts.
Now, in an attempt to buy more time, Pandora found help from a new partner that will give it much needed cash and perhaps in the future become its owner.
In accepting an investment of $480 million made by satellite radio providers Sirius XM, Pandora has put its hands on an important infusion of cash that was very much needed to cover expenses.
This new deal allows Sirius XM, controlled by John Malone the media mogul, to be the front-runner to one day buy the company outright.
A director at Pandora said that with the investment the company has received the backing of one of the most successful investors in the media industry and a significant amount of capital to speed growth.
One music tech analyst said that the investment gives Pandora a good chance at making a go at being competitive.
The investment is the most recent deal to shake up the music streaming online industry, which has become increasingly more popular with investors and entrepreneurs but proved to eat up large chunks of money.
Pandora in 2016 last over $343 million, which was almost triple its loss of 2015. Its active listener base per month contracted to a low of two years during the first quarter of this year to just over 76.7 million.
Spotify, which allows users to listen on demand to specific tracks, as well as to themed stations, like that of Pandora, has been successful in raising billions of dollars and will this year have an unconventional listing on the NYSE.
Streaming service Tidal, that is quite similar, was acquired by Jay Z, sold Sprint a stake in 2017, as it continued hemorrhaging cash.
Apple, Amazon and Google have streaming music services as well and all face the same challenge: Paying music rights and marketing proved to be a proposition that is much more expensive than originally thought.
This story was originally published by WKRB News (https://www.wkrb13.com) and is the sole property of WKRB News. If you are reading this article on another website, that means this article was illegally copied and re-published to this website in violation of U.S. and International copyright law. You can view the original version of this story at https://www.wkrb13.com/business/2209749/pandora-given-large-cash-infusion-by-sirius-xm.html