Pandora plans to step up its streaming radio service to compete with on-demand music services.
Some details of Pandora’s plans to expand its offerings followed the company’s Monday announcement that it expects to acquire technology and intellectual property from Rdio.
Brian McAndrews, Pandora’s chief executive, says in Pandora’s announcement:
“We are defining the next chapter of Pandora’s growth story. … Adding Rdio’s impressive technology and talented people will fast-track new dimensions and enhancements to our service.”
U.S. Bankruptcy Court records show that Rdio, which also offers a streaming radio service, filed a voluntary petition for Chapter 11 bankruptcy protection on Monday in Northern California.
MarketWatch reports that, during a conference call later Monday, McAndrews said the deal with Rdio is part of Pandora’s attempt to challenge on-demand music services from companies like Spotify, Apple and Google.
Currently, Pandora’s service is more passive than those of on-demand services like Spotify, MarketWatch explains:
While other services allow users to listen to specific albums and songs with the aim of locking them into monthly subscription fees, Pandora has stuck with a more passive style of online radio, which allows themed radio stations that choose songs for the listener.
Now, however, Pandora plans to add a multi-tiered subscription offering, with “late 2016” being the company’s “best estimate at this time,” according to MarketWatch.
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