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March 8, 2015

Pandora looking at a paid day-pass for its ad-free experience

by John_A

pandora-one-day-pass

While Pandora makes most of its money off its ad based streaming service, the company is looking to entice users into its paid service. The streaming company is looking to add a 24-hour day pass that you can purchase for a small price.

According to Chief Product Officer Chris Phillips, who showed off a slide to investors featuring the sign-up page for this new day pass, says that the $0.99 plan would make Pandora a good source of music for a summer BBQ with the idea that users don’t want to annoy their guests with a barrage of ad breaks. He also added that the company is toying with the idea making the day pass a three day pass.

A Pandora spokesman told Gigaom the following:

“Pandora is committed to delivering an effortless, personalized experience and we recognize some consumers may want an ad-free experience but don’t necessarily want to commit to a subscription. This offering will allow consumers to choose and explore what is right for them or suits a particular event or experience. Pricing and exact timing are yet to be determined but we expect it to be available later this year.”

 While users can get 192 kbps playback and a lot more skips per day, Pandora only makes $47.9 million from subscriptions versus the $220 million in revenue from ad-based streaming. Ad revenue also grew 36 percent where subscription based only grew by 24 percent.
That said, a 1-3 day ad-free option geared toward people who just need an ad-free experience every so often, may sway users to purchase the monthly sub. We’ll have to wait and see when the option is live.
source: Gigaom

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