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Pandora Announces Launch of Its Online Music Service on Apple’s iPhones

July 11, 2008

Today, Pandora Media Inc., www.pandora.com, the premier provider of personalized music online, announced the availability of its Internet music offering on the iPhone from Apple Computer. The announcement marks the first time that Pandora’s service will be offered free on a mobile platform. The service is available on the iPhone, iPhone 3G, and iPod touch. Pandora’s iPhone application means that now Pandora can offer its advertisers a mobile marketing platform to reach iPhone’s approximately six million mobile phone owners, one-third of whom are 25-34 years old and represent the cutting edge of the American consumer market.

“The launch of Pandora on the iPhone means that millions of consumers now have easy and free access to CD-quality personalized radio on the most innovative mobile device today, and marketers can leverage the double whammy of our two highly attractive consumer audiences and the intense affinity for our respective brands,” said Cheryl Lucanegro, vice president of advertising sales for Pandora.

As of today, Pandora’s service on the iPhone is fully integrated with Pandora’s web offering via a universal account. Once iPhone users download the Pandora application from the iPhone App Store, Pandora’s registered users can access their existing personal music stations from their iPhones. Then, Pandora’s iPhone application provides an additional platform for marketers to either extend their current advertising on Pandora to millions of discriminating and influential consumers or to create new campaigns with marketing messages, such as direct response ads, specifically tailored to mobile media.

“This announcement marks an important new era for Pandora and our role in advancing mobile media as an effective, exciting advertising platform. We look forward to working with clients to tap the unique attributes a mobile platform offers and maintaining the integrity of our users’ listening experience as a top priority,” said Lucanegro. “Their mobile experience will be the same as they enjoy online, and now advertisers can tap into that affinity, too.”

In making the iPhone platform available as a mobile media option, Pandora will offer advertisers a variety of audio and visual creative formats. According to Lucanegro, Pandora expects to roll out the iPhone mobile platform to advertisers before the end of the year.

iPhone Users are Trendsetters and Upscale Consumers

According to Nielsen Media’s Q1, 2008 data on iPhone users, they represent the creme de la creme of advertising targets: they fall into the two most attractive age groups, 25-34 years old and 55-64 years old; they spend more: 36% have a monthly phone bill of more than $100, a full sixteen percentage points higher than the average American mobile user; and, they love their music, 75% use the iPod function on their iPhone, second only to email at 76%. Morgan Stanley’s Rubicon March, 2008 report also found that 10% of iPhone users buy something from iTunes daily and that their ownership of more than one mobile phone places them at the leading edge of consumers driving the wireless industry.

About Pandora Media(TM)

Pandora (www.pandora.com), a personalized online music service is based on the Music Genome Project begun in 2000, the most thorough analysis of popular music ever undertaken. Songs in this unmatched collection are analyzed by trained musicians, and assessed against nearly 400 distinct musical attributes such as melody, harmony, and rhythm to capture its unique musical identity. Using this information to build playlists based on musical similarity, listeners simply enter a favorite song or artist, and instantly a personalized listening experience is launched which includes the discovery of new bands, artists and songs. Today, Pandora has a growing user base of more than fourteen million registered listeners, a database of over 500,000 songs, and national advertisers such as HP, Microsoft, Honda, Procter and Gamble, and Nike. Pandora Media is based in Oakland, California.

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 Media Contact: Vickie Welch Right Brain Marketing Ph (530) 550-9314 Email Contact

SOURCE: Pandora Media