Just a few weeks after Pandora’s IPO, there is talk that DISH Network might be interested in acquiring it. For now this is merely a rumor, and there are some reasons to discount it as a serious move, however, a move like this is inevitable. The question is not ‘if’ but ‘when?’
DISH currently offers limited streams of Sirius XM as its music option to subscribers. Replacing Sirius with Pandora makes sense for DISH. Pandora would automatically gain 15 million members. DISH would acquire a cheaper (cheaper in daily operating costs, the acquisition cost would be exorbitant) music provider than another satellite based company.
OnlineMusicNews.WordPress.com
Digital marketing agencies only indirectly benefits from this acquisition. There would be, however, two aftereffects of the merge. The first is that there would then be more people using Pandora. DISH subscribers might learn to enjoy it and then when they move about, DISH is geographically confined, they are more likely to then tune into Pandora. All of the advertising on Pandora will become more effective as traffic will ramp up. The second effect is part of a wider trend of people transitioning their media consumption from non-internet to internet based providers. Even if the digital agency does not advertise on Pandora sites, this trend will still help propel larger demographic shifts into digital marketing.
Seeking Alpha: Weighing the Takeover Rumors About Pandora
