My interview with Pandora CEO Joe Kennedy
Last night I was lucky enough to have the chance to speak with the CEO of Pandora, Joe Kennedy. The conversation was mostly centered around my curiosity for music and the industry itself. Still, I did pick up some great insight on the topic of entrepreneurship as well.
The music industry has always baffled me. New technology has completely revolutionized the way music is/could be distributed and experienced by listeners. Unfortunately, the major recording labels have largely clung to their old model at the expense of themselves and the market as a whole. Why aren't they updating their online distribution? Why aren't they reforming their recruitment and reach? I grew up in Rochester, New York. I got to see first hand what happened to Kodak as film died and digital cameras took over. And I also don't see too many Blockbuster or Borders stores anymore either. What makes the music industry think that it's immune?
Naturally, I asked him how the big labels hold on to their business, how Pandora is going to shake things up, what the industry will look like in a 30 years, etc. etc. I expected him to match my frustration and say something like, "Who knows, they'll all be out of business soon and it'll be all their fault. We're going to turn music on its head." Really what he provided was a much more reasonable and rational response. Simply put, the recording industry still does a decent job of recruiting new talent and controlling licensing. People don't pay as much as they used to for it, but this is what they know how to do and they can still make money doing it. All Pandora can do for now, is to try the best it can to perfect its service and create opportunities when possible.
Still though, Pandora has always stuck out in my mind as a company that has stood outside of the traditional music industry, as an example of a successful adaptation of modern technology. Maybe in the future, Pandora will itself start to control some of the means of distribution and licensing and will revolutionize the industry that way. I could tell based on my conversation with Joe and through my experience with Pandora that the company has a great entrepreneurial spirit that will allow it to notice market trends and adapt moving forward. Obviously most companies start this way, and lose that ability as they age and expand, but there are no indications that this will happen anytime soon.
If there was one message that I took away from Joe regarding entrepreneurship, it is this (paraphrased)-
If you aren't passionate about what you're doing, forget about it. On the other hand, if you can't be dispassionate about it and hold the contradictory viewpoints in your mind at the same time, you'll be just as lost. You have to be able to see both sides and understand that the rest of the world isn't like you.
For our conversation, that came in the context of understanding that the rest of the world as whole isn't as crazy about music as we are, but really this message translates to all types of entrepreneurial ventures. Next month I will begin my new job with the Downtown Project in Las Vegas, where I will be working to build up the local community through entrepreneurship/venture capital, I will undoubtedly keep this perspective at the front of my mind.
