Pandora reported slightly lower than expected 2Q16 results, with revs 3%/2% below our/consensus's topline forecasts given weakness in Nat'l advertising, which led to higher deceleration in the core ad biz. P also lowered FY16 guide slightly. Users declined modestly q/q, but listening hour growth accelerated. P remains focused on launching its On Demand service by year end. Maintain Market Perform. For more detail regarding On Demand music platforms and a broad overview of the US music industry, please see our recent music industry deep dive report (LINK).