Pandora announced plans on Wednesday to buy concert ticket service Ticketfly for $450 million. The company says the deal will help it become the “world’s most powerful music discovery platform” by combining live music events with its popular streaming service.
“This is a game-changer for Pandora – and much more importantly – a game-changer for music,” said Pandora CEO Brian McAndrews. “With Ticketfly, we will thrill music lovers and lift ticket sales for artists as the most effective marketplace for connecting music makers and fans.”
It’s unclear exactly how the two companies will integrate, though there are a few obvious possibilities. If Pandora notices you really like a specific artist or even genre of music it could suggest tickets to upcoming nearby concerts that match your interests. On the other side, any shows you attend through Ticketfly could automatically trigger new stations in your Pandora account.
Adding ticket sales to its business could also help Pandora justify the royalties it pays to artists for streaming their music which has led to much criticism. On average musicians make 80 percent of their revenue through touring, and ticket sales have been growing even while traditional music sales keep dropping.
Down the road Pandora might even offer extra benefits for its paying subscribers, like discounted concert tickets or early access. That’s just us speculating, but it seems like another clear advantage of combining the two businesses into one.