Pandora (News - Alert), the Internet radio broadcaster, has decided it needs a new source of revenue beyond the consumer market, and it would appear to have found one. It may be coming to an elevator near you.
Yesterday, Pandora said it had made a deal to offer a commercial version of the service in conjunction with DMX, a provider of piped in music for businesses. Though the specific terms of the whole agreement were not revealed, it will allow stores and restaurants to use Pandora’s customizable streams of music in their businesses for as little as $25 a month, according to the New York Times.
“The opportunity is now available for the first time to personalize and customize the music selection to really reflect the brand and atmosphere that a retail owner is driving for,” said Jessica Steel, Pandora's executive vice president for business and corporate development. “That applies from coffee shops and dentists’ offices to restaurant chains and clothing retailers.”
Piped in music in restaurants, stores and other consumer/retail locations is a big business – by some estimates totaling $750 million a year in revenue – and Pandora would appear to want to get its hands on a piece of that market. DMX, which will supply the hardware through which the Pandora music will be streamed, is already strongly into this marketplace, with piped-in music clients such as Saks Fifth Avenue stores, McDonald’s restaurants and the Applebee’s casual dining chain.
Tracey Schelmetic is a contributing editor for TMCnet. To read more of Tracey's articles, please visit her columnist page.
Edited by Jennifer Russell