Pandora Doesn't Reveal Much in Launch of Premium On-Demand Service

Pandora’s unveiling of its long-awaited premium on-demand service Tuesday was little more than a glimpse after months of references to a December rollout. A video on the company’s blog Wednesday focused on Pandora's legacy as a personalized radio service. As the company attempts to take on Apple Music and Spotify, among others, it will use its proprietary “thumbs up” and “thumbs down” features as differentiators. “All your thumbs create your unique playlists instantly,” it said. Subscribers can start a playlist and “we’ll help you finish it” by adding similar songs, Pandora said. It promoted offline availability, something its free and $5 services don’t currently offer, and it included a brief artist clip showing integration of local concert information, leveraging its purchase of Ticketfly purchase last year. “Find the songs you love and let the songs you love find you,” was a key message. The service is to roll out next year at about $10 per month. In a research note to investors, BTIG analyst Brandon Ross pitted Pandora Premium against the established competition: Spotify’s 30 million and Apple’s 15 million subscribers and “deeper pockets and consumer engagement” from YouTube and Amazon. Subscription content exclusivity is “starting to become a differentiator,” said Ross, and that will take financial resources and relationships with the music industry, he said. Meanwhile, reports have been circulating about a possible acquisition by SiriusXM. CNBC said Pandora was open to selling itself and willing to engage with SiriusXM, and in an update Wednesday, CNBC expanded the suitor possibilities beyond the satellite music company. Pandora had no immediate comment on the reports.