Pandora Pfollowed the footsteps of Spotify SPOT, Apple AAPLMusic, Alphabet GOOGLand Amazon AMZNand launched Family Plan for Pandora Premium recently. The plan, priced at $14.99, allows six people to gain access to Premium features under one billing account.
The company has kept the pricing and shareability on par with the family plans from Apple Music, Google Play Music, Spotify and Amazon Music, which were launched in June 2015, December 2015, May 2016 and November 2016, respectively.
Pandora CEO Roger Lynch was quoted by CNBC saying, "Frankly, we were missing one of these big opportunities, which is a family plan." Notably, the addition of the family plan is helping audio as well as video streaming companies boost their subscription base.
How is Pandora Poised to Benefit?
We note that digital music is growing on the back of on-demand streaming subscribers. The International Federation of the Phonographic Industry reported that in 2017 subscription-based streaming revenue accounted for 38% of all recorded music, up 9% from 2016.
Pandora has also been benefiting from rising subscription revenues on the back of growing Premium subscribers. The company’s subscription revenues increased nearly 40% in fiscal 2017 from fiscal 2016.