Report: Pandora To Offer New $5 Monthly Service
September 7, 2016 at 3:55 AM (PT)
PANDORA will soon offer a $5-a-month service that will give users added functionality, such as the ability to skip songs and play music offline, sources told the NEW YORK POST. Most unlimited streaming services charge $10 a month; PANDORA will also offer a full-fledged streaming option in that same price range, along with the cheaper $5 tier. The launch date for the new price tiers will be SEPT. 12th.
“The $5 offer will be killer for them,” one industry insider told the paper. “PANDORA has 76 million users that listen for free. It will have an easier time to get them to pay $5, so you might see some people switch back to PANDORA.”
One investor believes the $5 tier could attract 20-30% of its 78.1 million monthly active users. “They’ve invested a lot of money in this [on-demand service],” said one source. “There is a pressure to make it work, but they’re not out of business if they don’t.”
The company currently offers a radio service, called PANDORA ONE, for $4.99 per month with no ads and fewer interruptions than its free option. Those customers are expected to be rolled into the revamped $5 offering.