The Internet radio giant is expanding reach into ticketing business in game-changing move.
Internet radio and streaming leader Pandora Media Inc., announced Wednesday that it is branching out into the ticketing business through the acquisition of San Francisco online ticket retailer Ticketfly Inc., for $450 million in cash and stock.
The pairing of the two seemingly disparate businesses fits snugly into Pandora’s Artist Marketing Platform, in an ongoing effort to connect the listener with the artist.
“This is a game-changer for Pandora, and more importantly, a game-changer for music,” said Brian McAndrews, Pandora CEO.
The inking of this contract is part of a bigger push to expand Pandora’s focus on live music promotion, by aiding bands in connecting with their fans through service utilities like Artist Audio Messages, an instrument that allows the artist to record personal messages for their fans to stay in the know.
“Over the past 10 years, we have amassed the largest, most engaged audience in streaming music history,” McAndrews added. “Listeners see [artist messages] as a benefit. They could see that as intrusive…but it’s information they want to have.”
The buy will allow for Pandora to better integrate concert notifications and ticket sales into their algorithmic analysis of the listener’s music tastes, letting users know when their favorite band is in town and raking in a percentage from future ticket sales.
“With Ticketfly, we will thrill music lovers and lift ticket sales for artists as the most effective marketplace for connecting music makers and fans. “
With this purchase the company can dip into two of the fast-growing revenue pools in the music business, namely that of streaming and live concerts and will allow Pandora to control the transaction from artist message to ticket purchase.
Logo courtesy of Pandora press