Would you call your iPod or CD a Radio? No. Because Radio is an electromagnetic feed that catches your ear, and you hear live people from far way places. This feed invites you into the world of talk, song, story and news.
A digital music mix is not a Radio.
Apparently, Pandora is learning this lesson the hard way as highly satisfied users are falling away even more rapidly today than they were two years ago, according to a new study by the Bridge Ratings.
"Satisfaction is likely to turn even lower in order to overcome the cost of Pandora's per song royalty rates....There is a good chance that the need to increase ads/hour will grow even faster due to even higher royalty costs in the coming years," says Richard Greenfield in a post on BTIG Research.
This means that the geno project idea may not have been innovative enough to keep people listening. At the end of the day, there is no human interaction. People grow bored. Its initial attraction was no commercials, now that it has commercials people are even less likely to seek it out.
One of the main problems is that the number of songs Pandora has in its index is not very big. Terrestrial Radio has a long history of learning what it takes to keep people listening. And, after all these years it still is the number one place people go to find new music.