1. BY: LEEYA RESSOM BIG DATA AT PANDORA MEDIA, INC.

2. What is Pandora Radio? Customer-oriented music discover service that presents user-specific music playlist based on personal preferences Current leading streaming radio market Monthly audience of about 72 million active listeners Mission Statement: “Give people music they love.”

3. Product Product Promotion Price Location Marketing Mix Location: Philadelphia, PATime: Throughout the dayAge: 19 yrs. old, Gender: FemaleMusical Preference: Hip/Hop & R&B I chose Drake as my musician of choice. Played all of his recent hits and his old music as well. Also played other songs from similar artists with similar song styles such as J.Cole Contexts Performance Female College Student African American Interested in Hip-Hop/R&BS Lives in U.S. AustraliaAustralia New ZealandNew Zealand U.SU.S Free subscription Premium account for $4.99 per/month Leeya Ressom Customer Value Pandora was able to hand- pick a playlist that was customized especially for my taste! this builds… Loyal Customers Positive Reputation ROI from advertisements

4. How Pandora Makes Money? RevenueSubscriptionAdvertising 11% 89% In the third quarter of 2014, Pandora made $180 mill. $144 mill. or 80% came from advertising Pandora provides a platform for more accurate consumer audio advertisements than radio stations Focuses on local advertisement due to access of factors such as consumer demographics “This is really powerful information, and ensures that you don’t waste your money in the wrong area.”- Heidi Browning, Sr. Vice President of Strategic Solutions at Pandora Media, Inc.

5. Pandora Operational Costs 1.Boost subscription rate to $4.99 2.Monetize more traffic 3.Monitor competition According to Pandora, for every 1 million songs played it will cost $1,370. Resulted in $250 mill. in 2102 alone.

6. How Does Pandora Work? HOW?

7. Pandora’s “Musical Genome Project” Largest taxonomy of music information ever collected (About 500,000 songs) Created in 2000 by Tim Westergren and small team of entrepreneurs. Pandora hire “musicologists” to break down the “DNA” level of a song, identifying and rating elements such as meter, tempo, etc. Those data points build algorithms to help seek songs with similar or the same attributes.

8. Breakdown of the Genome Project  The project is made up of 5 sub-genomes: Pop/Rock, Hip-Hop/Electronica, Jazz, World Music, and Classical.  A song has approximately 450 “genes” and each gene corresponds to a characteristic of the music (i.e. background vocals, gender of lead vocalist, melody, harmony)  Rock and Pop have 150 genes, Rap has 350, Jazz songs have about 400 and World/Classical has 300-450

9. Breakdown of the Genome Project (con’t)  Each gene is assigned a number between 0 and 5, in half- integer increments and determined for each song.  The numbers assigned are crucial for weighing the importance of each gene.

10. Breakdown of the Genome Project (con’t)  Each song is analyzed by a musician in a process that takes about 25 minutes per song.  10% of songs analyzed by more than one musicologist ensures statistical reliability.  For each vector of one or more songs, a list of other similar songs is built using what the company calls a “matching algorithm.”

11. Insert Artist/Song Plays song based on musical similarity Thumbs Up/Thumbs Down Music Genome Project Similar Artist/Song styles Music Discovery

12. Weather Analytics for Pandora Although there are many factors Pandora considers for its company, one it has not placed focus on is consumer local weather.  According to the company Planalytics, accurately identifying weather-driven opportunities enables companies to effectively promote their brand and grow their business. Why is weather important for a business?

13. How Can Pandora Use Weather Analytics? Measure the Impact Inspect it’s sales history and find out when, where and how much weather impacts the business. Hypothesis Music has a direct effect on an individual’s mood. Listening to music can reflect how we feel or even alter the way we feel Upbeat music happy, active, excited, etc. Slow songs upset, calm, sluggish Weather also has effect on an individual’s mood. According to John M. Grohol, Psy. D. from PsychCentral “Humidity, temperature, and hours of sunshine had the greatest effect on mood. High levels of humidity lowered scores on concentration while increasing reports of sleepiness. Rising temperatures lowered anxiety and skepticism mood scores. ”

14. An individuals taste in music can change depending on their local weather How Can Pandora Use Weather Analytics? (con’t) Weather and Music Relationship Me Genres: Indie, Slow R&B, Jazz Genres: Hip-Hop/Rap, Pop, Top 100

15. Weather and Genome Project Integration Depending on the location of the customer, there are many different factors to consider along with weather:  Temperature  Humidity For example, Texas is more likely to experience hot temperatures with wet rain or hot winters while Massachusetts can experiences cold temperatures with sunshine or snowstorms. How How do we keep track of not only weather, but temperature and humidity across the Australia, New Zealand, and the U.S.?

16. Weather and Genome Project Integration (con’t)  Genome Project contains about 450 genes (background vocals, gender of musician, etc.) per song  Integrating the weather, temp. and humidity into the Genome Project could allow for more accurate weather analysis for Pandora’s music Solution Solution  The project should record the relationship between the genes of songs listened to and the weather, temp. and humidity of locations based on consumer zip code  Data of the consumers music choice with the combination of all those weather factors should be stored  Once the weather, humidity and temp. and song genes are correlated, matching algorithms should be built for other songs with the similar relationships

18. Conclusion “Music produces a kind of pleasure which human nature cannot do without.” - Confucius Pandora Radio is the best internet radio option because of it’s unique ability to create playlists that cater to each individual consumer. The workers behind Pandora Radio spent hours of research and analysis on a Big Data system that build algorithms to provide us with the perfect music for anytime of the day, anywhere!

19. Work Cited "Pandora Radio's Dominance Built On Big Data Edge." Forbes. Forbes Magazine, n.d. Web. 09 Aug. 2015. "Pandora - Marketing Spending 2014 | Statistic." Statista. Statista, n.d. Web. 09 Aug. 2015. "Big Data Technology, Streaming Music, And Pandora's Competitive 'Moat'" - Pandora Media (NYSE:P). N.p., n.d. Web. 09 Aug. 2015. Stella, Rick. "Who Picks the Best Songs? We Test Pandora, Spotify, Beats Music, Rdio, and ITunes Radio." Digital Trends. Digital Trends, 02 Nov. 2014. Web. 09 Aug. 2015. "About the Music Genome Project." Pandora. Pandora, n.d. Web. 09 Aug. 2015. Walker, Rob. "The Song Decoders." The New York Times. The New York Times, 17 Oct. 2009. Web. 09 Aug. 2015.