Pandora, the music streaming service, increased its mobile ad revenue by 86% to $60 million in its fiscal Q2 2013. Total revenues were $101 million — meaning the company now makes a solid majority of its ad revenues from mobile devices.That makes Pandora a HUGE player in the mobile ad arena.
However, it’s not helping Pandora turn a profit. The company lost $5.4 million, following a small profit the year before. Pandora’s six-monthly loss rose to more than $25 million.
That’s important: despite the fact that Pandora is a huge beneficiary of mobile advertising money, it isn’t helping the company meet its margins.
We’ve consistently noted that Pandora’s business model makes profits extremely unlikely any time before 2015, at which time the company hopes to strike a more favourable royalty payment agreement with record companies.
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