Pandora 2012 Annual Report Download - page 6

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Creating Long-Term Shareholder Value
As we seek to transform radio, we are focused on delivering great experiences for our
users and our advertiser partners, which we believe will strengthen our market
leadership position and create long-term value for our shareholders. The stronger
our market leadership, the more powerful our position in the rapidly changing
advertising markets of web, mobile and radio. As these markets develop, we firmly
believe our position will lead to an increase in revenue and profitability, and increased
value for shareholders.
Our long-term mindset has consistently reflected our focus on establishing and
securing a leadership position in the market. We have recently released metrics that
illustrate our leading market share position. Specifically, as of the end of February, our
trailing 30 day active registered listenership was 49 million. Total listener hours for
February were a record 975 million, allowing us to reach an all-time high of 5.74%
market share of all radio listening, up from the end of the fiscal year market share of
5.55%.
Our approach to the business is driven by a fundamental belief, based on experience,
in our ability to effectively monetize our listenership. This belief drives our decision to
invest in the long-term. We have accelerated our investment in radio ad sales
personnel, both local and national, and in the systems and processes needed to make
audio ad buying on Pandora simple, efficient and effective. As we look forward to
fiscal 2013, our primary objective is to continue growing our share of U.S. radio
listening, which we believe will be the ultimate driver of value creation for the company
due to the long-term monetization potential of this category.
Our DNA
Given this approach, our focus during the past year —as it has been for many years—
has been to deliver the best personalized radio experience in the world.
Fundamentally, radio has remained virtually unchanged since it was first invented; the
content has changed and the FM and satellite bands have been added, but the