Pandora has launched its new Premium Family Plan in which it allows six users to access the unlimited music streaming for just $15 per month. The deal which has launched by Pandora matches with the price of the family plans which are offered by the Apple Music and Spotify and can offer access up to 6 and five members respectively.
Music-streaming pioneer Pandora’s Premium Family plan include the feature which is known as “Our Soundtrack,” and it has a personalized playlist which was created basing on the combination of all family members listening preferences. In this plan, each member of the family needs to create their account, and after that, they will get their custom radio stations and playlists. They can also download music for offline listening and can also have access to the high-quality audio without any interpretation by ads. This means they will be getting all the benefits that normally a Pandora user gets.
This new deal by the company seems to be that it is trying to convert the 80 million monthly free listeners to paid subscribers. The company launched this premium service during the last March after acquiring the Rdio. Despite this, the company needs to go way ahead to catch up with the Spotify, which had about 70 million paid users by this January.
After seeing the Spotify’s business, Pandora has introduced the family plans in the year 2014 and investors have got the sense of what the company will be playing. Spotify has the average revenue per user decline in the years since the introduced plans which was expected that it will allow more users to join and can use the service at discounted rates.
According to the Spotify, it said, “From a product perspective, while the launches of our Family Plan and our Student Plan have decreased Premium ARPU (as further described below) due to the lower price points per Premium Subscriber for these Premium pricing plans, each of these Plans has helped improve retention across the Premium Service.”
Pandora now offers different offers than Spotify and the impact for the same will be harder to predict. In Pandora Premium Service, it also includes Pandora Plus which cost about $5 per month. Pandora Plus is the ad-free version of the Pandora’s flagship which is personalized with the internet radio service.