Revolutionizing the Radio Business

A cash-strapped start-up during the end of the dot-com boom, Pandora’s path to success is largely a story of commitment and perseverance. Founded in 1999 by Tim Westergren, Pandora Radio, or simply known as Pandora is a music streaming program that utilizes algorithms and technology to personalize online radio stations. Originally a B2B company, the start-up pursued technology licensing and sold their services to businesses like Best Buy, AOL and Tower Records. Struggling to bring investors on board, the company soon exhausted their initial funds by the end of 2000. For two years, Westergren struggled to keep the lights on and begged employees to work unpaid.

After 348 pitch attempts, the company successfully secured a $9 million investment in March, 2004. The team was able to return to its initial vision of producing customized radio stations to consumers and subsequently launched an iOS application in 2008. The new mobile interface mimicked the convenience of traditional radio stations, allowing consumers to stream music from their cellphones on the go. Within a day, the service generated 35,000 new users, doubling the number of daily subscriptions. Over the past decade, Pandora has established itself as one of the world’s most popular online streaming service. With 80 million users tuning in an average of 15 hours monthly, it has truly revolutionized the radio business and the way the public consume music.