Sirius XM (NASDAQ:SIRI) and Pandora (NYSE:P) face competition from a relatively new kid on the block — privately held TuneIn. “Half of all radio listening happens in the car, and yet we only get 70 options when we get into the car,” said TuneIn’s CEO John Donham. “We see it as a huge opportunity and we’re trying to get into as many models as possible.” That is TuneIn’s competitive advantage — options its competition cannot match.
Unlike Sirius, which has a set number of “stations” like traditional radio, and the generated playlists of Pandora, TuneIn lets you choose your own stream. The company’s model is significantly different in that it shares revenue with existing broadcasters, reports the LA Times. Of course, there are still ads. TuneIn reaches its listeners by offering a website and an iPhone app.
The company recently announced via its blog that “ Today, we announced that we raised a $25 million round of funding led by Institutional Venture Partners (IVP), with participation from our existing business partners Sequoia Capital, Google Ventures, and General Catalyst Partners. We also announced we have surpassed one billion listening hours in the first four months of 2013, with over 227 million listening sessions in the month of March alone, making us the world’s number one source for live, online radio.” Impressive figures.