Pandora Media Inc (NYSE:P) may be preparing to launch its on-demand service next month in the United States.
A new report from The Wall Street Journal claims that the company has almost finished signing deals for its on-demand streaming service. The new service would allow users to choose which songs they want to listen to. This is a feature that hasn’t ever been available to Pandora listeners.
The new on-demand version of Pandora will reportedly include two different subscription levels for listeners. It’s believed that the new tiers will be $5 and $10 per month. The internet radio company already has a paid subscription tier, but it only removes advertisements. 4 million of its 80 million monthly users are subscribers to the paid tier.
Pandora has seen its user growth stop recently and it’s hoping to draw listeners back to its service with the new on-demand offering. This offering will put the internet radio service in direct competition with rivals Spotify, Apple Inc.’s (NASDAQ:AAPL) Apple Music and others, WSJ notes.
Pandora’s inability to spur user growth has been followed by news of a possible sale of the company over the last few months. This appeared to be where the company was going before founder Tim Westergren took over as CEO in March. However, sale rumors stared spreading again in July on speculation that the company had hired Centerview Patners to negotiate a sale.
P stock was up 3% as of Friday afternoon following news that its new on-demand music streaming service is almost ready to launch.
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