Streaming of live music is the newest way in which many people are able to access music without necessarily having to pay for any subscription. In fact, the use of music services such as Spotify and Apple Music has been increasing by the day. However, Pandora Media Inc. (NYSE:P) is quickly claiming its space in the market and actually, a recent survey illustrates that it is being used more often than the combination of Apple Music and Spotify.
The music service has a new feature. Radio listeners and those on, Pandora Plus, which is Pandora’s mid-tier offering will have an option of watching a 15-second video ad. Nonetheless, the Ads are likely to extend to 30 seconds even though the advertiser does not have to wait for this period.
The new feature is aimed at jump-starting flagging user growth
Pandora’s Premium service was launched earlier in the year and it goes for $9.99 per month. Being able to watch a video ad while at the same time having access to premium features will be a great deal for listeners. In the recent past, Pandora’s user growth has not been doing so well and especially among the young people.
According to Chris Phillips, Pandora’s Chief Product Officer, the unlocking feature is applied multiple times a day and the main intention is to promote new content. The company’s President and CEO Roger Lynch added, “Our ad-supported listeners’ top request has consistently been the ability to directly play the specific songs, albums, or playlists they want.”
But Pandora has also had its share of woes
Pandora explains that between 20 and 49 users are likely to develop the interest in the new feature of advertising. The ability to search and play songs using a Premium product is also expected to be a game changer for artists.
However, the company has had a share of tortures. Its financial status remains wanting, given that it has been losing money over time. Nonetheless, it is expected that the new feature will give it a turnaround. Meanwhile, its total subscribers have grown to 5.19 million within a year and apparently, a majority of Pandora’s revenue is from ad related business.