Pandora Says 2.5 Million Use Service in Cars; Shares Gain
Pandora Media Inc. (P), the biggest online radio service, said the number of U.S. listeners in cars topped 2.5 million, a milestone in efforts to win customers from traditional stations. The stock rose the most since March 8.
Listeners obtain the service from 23 auto brands and eight car-stereo makers, Oakland, California-based Pandora said today in an e-mailed statement. This year, Pandora will become available in more than 100 models, Chief Marketing Officer Simon Fleming-Wood said.
About half of all listening takes place in autos, a crucial battleground in the $15 billion local radio advertising market. Pandora, with more than 70 million monthly users, will come installed in one-third of all new vehicles sold in the U.S. this year, the company said.
The shares gained 8.5 percent to $16.41 at the close in New York, the biggest advance since March 8. The stock has climbed 79 percent this year, compared with the 11 percent gain for the Russell 1000 Index.
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