New Pandora Offering Is Geared Towards Families
Music-streaming pioneer Pandora (NYSE:P) has quietly rolled out a new subscription tier for families on its on-demand Premium music streaming service. These Premium Family plans are now available for $15 per month. The new plan was first reported by Android Police.
Pandora’s Premium Family plan can include up to six users, allowing more users to join and use the service at discounted rates. Users that choose the new subscription tier get access to a wide range of features not available on the app’s free tier. Premium Family plan customers can get higher quality audio without ads, can create radio stations, can download music for offline listening, and can skip and replay songs.
The Premium Family plan also includes a new feature called “Our Soundtrack,” unveiled last week. Our Soundtrack is a personalized playlist based on a combination of all family members’ listening preferences. Music lists are generated based on more than 70 algorithms built with machine learning that take Pandora’s knowledge of the users and of music into their calculations.
Pandora is coming a little late to the family plan game. Rivals Spotify Technology (NYSE:SPOT) and Apple (NASDAQ:AAPL) have long offered family plans at the same price point. They have become important offerings because family plans tend to enjoy much higher retention rates than plans geared towards individual users.
Those who use Pandora on their mobile device may find it a bit tricky to sign up for the new family plan. The company says that Pandora users who have subscribed through the Amazon Appstore, iTunes, Google Play, or Roku won’t have access to the new plan. In order to sign up for the new family plan, users using these devices will have to cancel their subscription or wait for it to expire. Then, they will have to subscribe to Pandora’s Premium Family plan from a computer instead of a mobile device.
Pandora Premium launched less than a year ago. Adding new Pandora Premium subscribers has helped Pandora steadily increase its average revenue per user (ARPU). In addition to Pandora Premium, the company also offers Pandora Plus. Pandora Plus, which costs $5 per month is the ad-free version of its internet radio service. Pandora’s user base is still mostly free ad-supported users.