So many listeners have turned off Pandora that Friday could have been called the day the music died for the internet radio streaming pioneer. Late Thursday, Pandora said it ended its third quarter with 73.7 million active listeners, a decline of more than 7 million listeners from the 81 million it had in the same quarter a year ago. Declining listener numbers, along with weaker-than-expected advertising revenue and a disappointing fourth-quarter forecast, had investors tuning Pandora out on Friday, as the company's shares fell by almost 25 percent, to close at $5.59.
Pandora still has more listeners than Apple Music, which has 27 million paying subscribers. But the Oakland-based music streaming business trails its other major rival, Spotify, which has 140 million active listeners, including 60 million who pay a monthly fee for on-demand streaming and to avoid listening to commercials with their music.
For comparision, Pandora now has just 5.19 million paying subscribers for its two ad-free streaming music services.