Pandora Nears Launch Of On Demand Streaming Service, Overseas Expansion
Pandora could launch their promised on demand streaming music service as early as next month, according to multiple sources. But with Apple, Spotify, Tidal, Rhapsody, Slacker, Soundcloud, Deezer and others fighting for market share; and Rdio, Guvera and CUR dead or very close to it, Pandora will join a glut of competitors.
Pandora is nearing deals with major labels and publishers that will allow it to launch a Spotify-like on-demand streaming music service this Fall, according to multiple sources. The deals should also pave the way for an overseas expansion of both Pandora's current free online music service and a $10 per month on-demand service.
While we're told that all the deals are not done, the labels are said to be inclined to finalize them; and the Wall Street Journal is reporting that the launch could happen as early as next month. In addition to its current free and new $10 tiers, Pandora is reportedly working to add features to its current $5 per month ad free Pandora One service by allowing more song skips and offline listening. An estimated 4 million users currently pay to subscribe to Pandora One.
It is Pandora's variety of services and price points that have the labels intrigued, as well as, its ability to reach out to a base of 78 million active users. For Pandora and its increasingly wary investors, the expansion should drive user growth, which has slowed in recent months.
Pandora stock rose 3.21% to $13.35 in early afternoon trading on Friday.