Pandora (P) to Use Music Analytics, Buys Next Big Sound – Analyst Blog – Yahoo Finance

Pandora Media, Inc. P recently unveiled its decision to acquire leading online music analytics provider — Next Big Sound. The financial terms of the deal remain undisclosed.This acquisition will allow Pandora to leverage Next Big Sound’s analytics tool to enhance its position in the music industry. The acquired entity will offer all the critical insights on a single platform and also an advanced range of useful tools that are like to add immense value to Pandora’s business.Pandora will be able to broaden its range of data centric offerings on its Artist Marketing Platform (AMP). The platform allows artists to use features like Artist Insights and Artist Audio Messaging in order to gauge listener activity and improve their engagement levels.The two companies have complementary assets. While Next Big Sound has sound analytics tools, Pandora can provide it with an immense reservoir of data from its 80 million monthly active users that have led to over 50 billion thumbs on tracks that were played. Thumbs on tracks is a feature on Pandora that allows users to like or dislike a track using ‘thumbs up’ or ‘thumbs down’.  Utilizing the tools from Next Big Sound, Pandora will be able to quantify the impact of social media as well as marketing and promotional events on its sales. Furthermore, this acquisition can prove to be a boon for Pandora’s clients including artists, agents, managers, promoters, publishers, labels and even brands as they can use the insights to take marketing decisions. In fact, Pandora can also use the information to track budding artists so as to provide information to brand managers regarding a possible partnership and its impact.Next Big Sound was launched in 2009 and aimed at providing analytics-based solutions to the music industry. The company tracks data from social media like Facebook FB, Twitter TWTR, YouTube, Wikipedia and even Pandora’s most prominent rivals like Apple’s AAPL iTunes and Spotify. The company uses data gathered from these sources as well as from a wide range of events and concerts to provide valuable insights regarding music consumption and even the effect of social media and advertisements on the music industry.We believe that the acquisition will allow this Zacks Rank #3 (Hold) company to grow its advertisement revenues in the long run. At present, Pandora derives most of its revenues from subscriber base growth.Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Source: Pandora (P) to Use Music Analytics, Buys Next Big Sound – Analyst Blog – Yahoo Finance

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