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# After Pandora Earnings Reports, Slacker CEO Reminds Why Competitor May Never Be Profitable
- URL: https://www.hypebot.com/after-pandora-earnings-reports-slacker-ceo-reminds-why-competitor-may-never-be-profitable/
- Published: 2013-05-24T08:10:00.000Z
- Updated: 2013-05-24T08:10:00.000Z
- Description: Minutes after Pandora reported record, but still unprofitable, earnings and user growth, Slacker CEO Jim Cady took aim at his competitor's business model: “Pandora grew revenue, but will continue to. Continue reading [https://www.hypebot.com/hypebot/2013/05/after-pandora-earnings-reports-slacker-ceo
- Author: Bruce Houghton
- Tags: Music Business, Music Tech, Streaming, #wp, #wp-post, #Import 2026-01-21 10:43

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Minutes after [Pandora reported](https://www.hypebot.com/pandora-reports-70m-active-users-25m-paid-subscribers-revenue-up-55/) record, but still unprofitable, earnings and user growth, Slacker CEO Jim Cady took aim at his competitor's business model: “Pandora  
grew revenue, but will continue to struggle with profitability until they  
rethink their licensing structure,” Cady said.   
“Controlling costs by punishing users with a listening cap is a dicey strategy;  
we’re seeing our audience grow by 10-15% in the second half of every month as  
Pandora users hit the cap and come to Slacker.

Slacker has cut direct licensing deals with rights holders, and not added listening caps for free users.

“Slacker’s  
model allows us to be margin-profitable on every user, free or paid, no matter  
how long they listen,” Cady added. “Expanded content rights allow us to  
complement our ad-driven business with a higher-margin subscription service  
that delivers on on-demand plays, offline listening, unlimited track skips and  
more, which Pandora can’t offer.”

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