Report: Spotify Set To Launch 'Pandora-Like' Service
April 26, 2012 at 3:56 AM (PT)
SPOTIFY is reportedly "developing a U.S. Internet radio service that would directly challenge PANDORA, two people with knowledge of the situation told BUSINESSWEEK.COM. The current SPOTIFY business model allows users to create playlists from specific albums and tracks. The format being developed would be similar to PANDORA -- which is closer to radio, and pays lower royalty rates.
"The new service would start by year-end and be supported by advertising," reports BUSINESSWEEK, which adds "the company has begun notifying some content partners of its plans."