OK, not sure if anyone still says that, but Pandora may just open the box and reap some mayhem with their latest idea – 99 cents for 24 hours of ad-free listening. The idea is that if you hate ads but really aren’t comfortable with paying for a music subscription, you can get ad-free music at 99 cents a day.
- As reported by Music Business Worldwide Pandora CFO Mike Herring mentioned the option of offering ‘a la carte’ listening in a recent earnings call to investors, and the likeliest move is the new ad-free day pass to Pandora for 99 cents.
- “[This will work] if you’re having a party and you… just want to play Pandora but you don’t want the ads to show up over the loudspeaker when your guests are in the house, or during thanksgiving dinner or something,” said Herring. “So we’re looking at ways of supplementing [our] ad business.”
This would be a great way to both convert existing non-paying subscribers (and there are a lot of them) and to attract new subscriber’s to Pandora’s model. Though it makes a lot more sense for regular Pandora subscriber to pay $5 for the whole month, this may ease some of those folks off the fence.
- “We do a lot of trade-offs between advertising and subscription business in order to optimize for revenue and for profit. As we look to the future we think there are significant opportunities to add more price points,” explained Herring.
More Here… [DigitalTrends]