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Pandora Begins Search For Next CEO

STEVE INSKEEP, HOST:

NPR's business news starts with the shuffle on the top for Pandora.

(SOUNDBITE OF MUSIC)

INSKEEP: Pandora is the popular music streaming service. And the company's CEO announced, yesterday, he's stepping down. Joseph Kennedy's announcement came as a surprise to many people. The company just reported better-than-expected quarterly earnings. But Kennedy says after nine years on the job he needs to get to a recharging station. He speaking metaphorically, of course, but who knows, someday people may actually do that.

As CEO, Kennedy oversaw Pandora's development of technology that allows users to tailor their own digital music stream - building a base of 67 million listeners. His successor will face many challenges, such as high music licensing costs, weak ad revenues and the looming possibility that Apple might soon enter the Internet radio market. Transcript provided by NPR, Copyright NPR.

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