During a majority of Pandora's conferences the question of who their greatest competitor is comes into play. Is it terrestrial radio or Spotify? They seem to always come to the same conclusion that they should seek to capture traditional radio listeners. " Pandora CEO Brian McAndrews told investors that they see terrestrial radio's "17 billion dollar opportunity" as being the real target for the company. " In order to do this they will attempt to shift to local radio advertising. "Pandora clearly does not see Spotify as their large direct competitor in that space, it's radio."
Pandora by directing their energy to radio advertisements they are directly communicating to a their target audience of music listeners. By focusing on attracting these listeners to more modern methods of listening to their favorite genres, artists, and songs, they are taking care of both competitors (traditional radio and Spotify) since this is an innovative direction which Spotify has yet to attempt.
Radio Ink - Radio's Premier Management & Marketing Magazine. (n.d.). Retrieved February 6, 2015, from http://www.radioink.com/Article.asp?id=2891802&spid=24698