Case ID: 610077     Solution ID: 28804

Pandora Radio Fire Unprofitable Customers Case Solution

Abstract

Pandora Radio is at an intersection. Author Tim Westergren has quite recently been advised by an understood VC to dispose of his unbeneficial clients so as to get his expenses down, yet Westergren is not certain that such activities are steady with his organization's plan of action. Pandora Radio is the biggest Internet music stream webpage, and its quickly developing client base adores the free adjustable music stream under a promoting bolstered model. Pandora needs to pay eminences for each tune spilled, and has other variable expenses that scale directly with hours devoured, yet it has found a way to limit the measure of use among its heaviest and most faithful clients. Can Pandora make its model work when a huge rate of its clients cause it to lose cash?


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