Pandora's Price Estimate Revised To $20.22 On Expected Rise In Content Acquisition Costs

Even in the best case scenario, Pandora might be able to negotiate only a marginal revision in the proposed rates. Keeping this in mind, we have revised our price estimate for Pandora from $24.16 to $20.22, by adjusting its "content acquisition costs as % of revenues". There is a growing belief in the music industry that free music providers are not paying song writers and labels fairly. Hence, a rise in royalty rates is increasingly inevitable.