SiriusXM has provided a cash injection to Pandora to gain exposure to the music streaming market.
(CCM) — Satellite radio company SiriusXM has agreed to make a $480 million "strategic investment" in Pandora, one of the earliest internet radio services, Pandora has announced. SiriusXM has about 32 million subscribers to its radio service, while Pandora has an audience of about 100 million quarterly listeners in the U.S.
The key reason for the investment stems from the launch in April 2017 of Pandora Premium, a $10 per month music streaming service. SiriusXM is not involved in music streaming by itself. However, through its investment in Pandora, it will be hoping that it can capitalize on Pandora's existing radio streaming customers' appetite for a more standard music streaming service. SiriusXM is also looking to expand its radio audience to internet and mobile devices, Pandora's domain; while Pandora would like to tap the driving market, where SiriusXM is particularly strong.
"The investment from SiriusXM infuses resources to help Pandora continue to grow and innovate," said Pandora CEO and founder Tim Westergren. Although he did not specify how he plans to use the resources, it is likely that they will be used in part to increase Pandora Premium's visibility in a music streaming marketplace which is dominated by the likes of Apple Music, Spotify, Tidal, and SoundCloud.
Image: © SiriusXM.