The internet radio service that started it all is apparently enjoying some decent success with their iPhone application. Pandora’s web-based internet radio may have revolutionized the way a lot of geeks and office workers listen to music, but the Pandora iPhone application helped bring the service into the mainstream and out from behind a cubicle wall. Pandora for iPhone quickly rose through the iPhone AppStore’s ranks to become one of the most-downloaded applications in 2008. And, it seems the iPhone is helping to drive more music sales through Pandora’s affiliate programs.
Pandora makes its money by selling music to its listeners through affiliate programs. The internet radio service offers users an easy way to purchase a new-found song on iTunes or Amazon’s music store, netting Pandora a small profit on each track sold. Pandora CTO Tom Conrad told TechCrunch that the company is selling some 1 million songs a month, and the iPhone has driven 20% of those sales.
Of course, Apple and Amazon take their fair share of Pandora’s music sales, but it’s good to hear that iPhone users are embracing Pandora’s music-buying services. Currently, buying a song in the Pandora iPhone applications requires quitting Pandora and buying the song through iTunes. It will be interesting to see if in-app music purchasing, which will be possible with iPhone OS 3.0, will boost Pandora’s bottom line.
[Via: WashingtonPost]