Commissioned by the Canadian Association of Radio Broadcasters, this survey is an adjunct to a larger Canadian study exploring the role and relevance of radio in today’s fast-changing media landscape. The purpose of this U.S. survey was to better understand the impact of Pandora on broadcast radio in the U.S. in advance of Pandora’s anticipated launch in Canada within the next few years.

1. WHAT PANDORA MEANS FOR RADIO
Summary Report | November 2012

2. Introduction
• This summary report contains the results of a survey of American online adults
conducted by Vision Critical between September 26 and October 1, 2013.
• Commissioned by the Canadian Association of Radio Broadcasters, this survey is an
adjunct to a larger Canadian study exploring the role and relevance of radio in
today’s fast-changing media landscape.
• The purpose of this U.S. survey was to better understand the impact of Pandora on
broadcast radio in the U.S. in advance of Pandora’s anticipated launch in Canada
within the next few years.
• Specific objectives included:
– The impact of Pandora on tuning to broadcast radio; and
– The role, if any, that broadcast radio still plays among Pandora listeners.
2

3. Methodology
• Online survey conducted via computers, tablets and smartphones using Vision
Critical’s Sparq survey platform
• Sample:
– 1,017 American adults; of these, 323 identified themselves as Pandora users (used an
Internet-only audio service in the past month; and at least sometimes use Pandora)
– Sample was randomly selected from Vision Critical’s online research panel of 150,000+
Americans, Springboard America*
– Final results weighted to reflect the population distribution of the U.S.
* Note: The results presented here reflect the perceptions and reported behavior of engaged online
consumers on the Springboard America panel. Their use of online technology can be considered one
step ahead of the general public—a relevant sample for providing forward-looking insights to the radio
industry.
Springboard America was recently used by Vision Critical’s public affairs division, Angus Reid Public
Opinion, to successfully predict results in the most recent U.S. election, earning the firm’s polls a top
ranking from Nate Silver’s fivethirtyeight.com and the dailykos.com .
3

4. More than 4-in-10 online adults report listening to
Internet-only audio services in the past month
42%
Base: American online adults, aged 18+,
Headphones from The Noun Project
4

5. Pandora is, by far, the most widely listened to
Internet audio service, followed by iHeart Radio
-among past month listeners to Internet-only audio-
% say ever listen % say listen weekly % say listen daily
85%
63%
45%
36% 35% 34%
27% 27%
20% 23%
16% 19% 16% 19%
11% 12% 13% 11%
7% 9% 7%
Base: American online adults, aged 18+, listened to Internet audio service in past month
B7b. How often, if ever, do you listen to each of these Internet-only audio services?
5

6. Pandora listeners skew towards Millennials and Gen X.
29%
18-29
42%
21%
30-44
39% Say listen to Pandora daily
Say listen to Pandora weekly
12%
45-54
21%
6%
55-64
13%
2%
65+
5%
Base: American online adults, aged 18+
B7b. How often, if ever, do you listen to each of these Internet-only audio services?
6

7. Men and women are equally likely to report listening
to Pandora.
16%
Men
27%
Say listen to Pandora daily
Say listen to Pandora weekly
14%
Women
25%
Base: American online adults, aged 18+
B7b. How often, if ever, do you listen to each of these Internet-only audio services?
7

8. Pandora shows robust growth—more than 1/3 of its
audience say they started listening in the past year.
When current listeners say they started listening to Pandora
3+ years ago
21% In past year
36%
2 - <3 years ago
18%
1 - <2 years ago
25%
Base: American online adults, aged 18+ who listened to Internet-only audio in past month & ever listen to Pandora
B7c. How long have you been listening to Pandora?
8

9. Pandora listeners report spending more time with
AM/FM radio than non-Pandora listeners do.
Average reported tuning to AM/FM
19.1 hours/week
12.7 hours/week
Don't listen to Pandora Pandora listeners
Base: American online adults, aged 18+
B5a. On a typical weekday, how much time would you say you spend… listening to AM/FM radio?
B5b. And what about on the weekend? How much time would you say you spend on a typical weekend day… listening to AM/FM radio? 9

10. Overall, Pandora users report spending more time listening
to AM/FM now than they did 2 years ago.
Reported change in listening to broadcast radio over past 2 years
22% 24 %
Less Time More Time
Net Change + 2%
Base: American online adults, aged 18+ who listen to Pandora
B2. Thinking back over the past two years, would you say you are doing more or less of the following… listening to AM/FM radio
Clock designed by Dmitry Baranovskiy from The Noun Project
10

11. Tenured and recent Pandora listeners spend about
the same amount of time listening to AM/FM radio.
Average reported tuning to AM/FM
19.7 hours/week
18.4 hours/week
Listened to Pandora <2 years Listened to Pandora 2+ years
Base: American online adults, aged 18+ who listened to Internet-only audio in past month & ever listen to Pandora
B5a. On a typical weekday, how much time would you say you spend…
B5b. And what about on the weekend? How much time would you say you spend on a typical weekend day…
11

12. Pandora listeners are music fans, who devour music
across all platforms.
% report listening daily
65%
AM/FM
radio
55%
36% Listen to Pandora
cassettes/
cds
19% Don't listen to Pandora
46%
iPod/mp3s
12%
27%
9%
Base: American online adults, aged 18+
B1. How often, if ever, do you normally read, see, hear or access the following media sources?
Cassette designed by Mathies Janssen, CD & iPod from The Noun Project
12

13. Laptop/desktop computers are Pandora listeners’
most common access point to Internet radio.
% Reported listening to Internet-only audio in the past month on each platform
desktop/
laptop 67%
mobile
phone/ 39%
smartphone
Tablet 14%
Base: American online adults, aged 18+
B6. Thinking of the past month, have you listened to the following on these devices?
Laptop designed by Sam Ahmed, Smartphone designed by George Agpoon, Tablet designed by Megan Hillman from The Noun Project
13

14. Pandora listeners are also much more likely than non-
Pandora listeners to access AM/FM on digital devices.
% Reported listening to AM/FM radio in the past month on each platform
31%
desktop/
laptop
12%
Pandora listeners
16% Don't listen to Pandora
mobile
phone/
smartphone
3%
8%
Tablet
1%
Base: American online adults, aged 18+
B6. Thinking of the past month, have you listened to the following on these devices? [AM/FM radio stations]
Laptop designed by Sam Ahmed, Smartphone designed by George Agpoon, Tablet designed by Megan Hillman from The Noun Project
14

15. Most Pandora listeners continue to see AM/FM radio
as playing an important role in their life.
Totally indispensible Important part of my life Sometimes useful Couldn't care less about it
Importance
placed on
Pandora by 14% 38% 44% 4%
Pandora
listeners
Importance
placed on
AM/FM by 15% 37% 39% 9%
Pandora
listeners
Base: American online adults, aged 18+; listen to AM/FM radio; listen to Pandora
C1a. Which of these statements best describes how you personally feel about each of the following?
15

16. Why Pandora listeners still place value on AM/FM radio:
• Personal touch
– “personalities that entertain”/ “banter from real people” / “interactive” / “talk radio” / “call on the
phone to have them play a favorite song” / “giveaways and contests”
“It helps me feel engaged knowing someone normal just like me is speaking their opinion for everyone to
hear.” (19 year-old male)
• Local and live info
– “local events, news, and businesses” / “local news/sports“/ “local advertising”
– “road conditions” / “weather alerts” / “keeps me in touch with the world”/ “breaking news and traffic”
/ “always current”/ “updates about contests, concerts, etc.”/ “live news as happens “
“Honestly, the commercials… how I hear about concerts and events going on, things I'd like to do with
my friends.” (21 year-old female)
• Music discovery/curation
– “mix of music that you might not have picked out” / “new music, random music” / “hit music that keeps
me current”
“More up to date and gives you information on the newest music and what people are starting to like.”
(18 year-old female)
– “variety of song and genre choices”/ “diversity of music”/ “variety of old and new music”
• Easy/convenient
– “easily accessible whether you're in your home or car” / “easy to use while driving”
– “listen in the car without worrying about making any technology work....just switch the button on” /
“anywhere anytime without logging in”/ “don’t need to use the data plan on my phone “/ “don't have
to worry about battery charges”
Base: American online adults, aged 18+ who listened to Internet-only audio in past month & listen to Pandora
C2. Given all the other audio alternatives that are now available, what are those things about AM or FM radio that set it apart and give it the
greatest value to you personally? 16

17. Pandora listeners give AM/FM radio an edge over
Internet radio for convenience and feeling connected...
% of Pandora listeners associating each audio medium with each attribute
65%
59%
Easy
38%
55%
63%
61% AM/FM Radio
Convenient Internet audio
35%
53% Satellite radio
iPod/MP3
52%
Helps me feel 39%
connected 33%
22%
Base: US online adults, aged 18+ who listened to Internet-only audio in past month & ever listen to Pandora / listen at least once a month to medium being associated
C3a⁄b. Which of the following words or phrases, if any, do you associate with each of these?
17

18. … but, while most still listen, Pandora fans are also more
likely to see AM/FM radio as “boring” and tiresome.
% of Pandora listeners associating each audio medium with each attribute
44%
Get tired of it 15%
after a while
16%
24%
AM/FM Radio
Internet audio
20% Satellite radio
iPod/MP3
7%
Boring
9%
6%
Base: US online adults, aged 18+ who listened to Internet-only audio in past month & ever listen to Pandora / listen at least once a month to medium being associated
C3a⁄b. Which of the following words or phrases, if any, do you associate with each of these?
18

19. How Pandora Listeners See the Role that AM/FM
Radio Plays in the Audio Landscape
This chart shows, based on proximity, those attributes with which each audio medium is most uniquely associated
among Pandora listeners—e.g., AM/FM radio is most uniquely associated with being “convenient,” “easy,” “helps me feel
connected,” “boring” and “get tired of it after a while.”
Offers me something I
can’t get elsewhere
Helps me discover
music I haven’t heard
before
INTERNET AUDIO SATELLITE RADIO
Fun SERVICES
Energizing
Relaxing Interesting
Personal Puts me in a good
mood For people like me
IPOD/MP3
Convenient
Easy
Makes me feel
connected
AM/FM RADIO
Boring
Get tired of it
after a while
Base: US online adults, aged 18+ who listened to Internet-only audio in past month & ever listen to Pandora / listen at least once a month to medium being associated
C3a⁄b. Which of the following words or phrases, if any, do you associate with each of these?
19

20. Summary & Implications
• The findings indicate that AM/FM radio and Pandora can co-exist.
– At least among the current pool of Pandora listeners, it’s not a zero-sum game. Pandora is
not replacing AM/FM tuning, it’s additive—just another way music fans can indulge their
passion for music.
• AM/FM radio still plays a unique role among Pandora listeners.
– AM/FM is easy and convenient. But, more important, broadcast radio offers a personal
connection they don’t get from Pandora or other audio alternatives.
• Among the implications for broadcast radio:
– Pandora and similar services are not the end of radio, but rather an opportunity for
broadcast radio companies to expand their footprint.
– Like earlier technological challenges to radio (TV, 8-tracks, the Walkman, CDs), the robust
growth of Pandora shifts the landscape, re-defining the role that broadcast radio plays .
– Broadcast radio can best stay relevant by focusing on the personal connections and live
and local content that other audio alternatives can’t deliver.
20