Pandora offering a family pack
Music streaming company Pandora (P) has launched a family version of its premium service for $14.99 per month. With this version, up to six users can use the service, which otherwise costs $9.99 monthly per user.
An annual subscription of the family version is also available at an annual $164.98 fee, which would save users a month’s subscription fee annually. Pandora is far behind Spotify (SPOT) and Apple (AAPL) Music in terms of paid subscribers, as the graph below shows.
Pandora hopes its new features will help it compete with rivals
Whereas most of Pandora’s 72.3 million users use the free ad-supported version, the company makes most of its money from its 5.6 million paid subscribers. The company hopes for a higher percentage of paid customers.
Pandora’s new family plan could help it compete with Apple Music and Spotify, which already offer family deals at an identical price.
Pandora recently added a Spotify-like personalized playlist feature in an attempt to up its game. Its stock has risen 45.3% this year thanks to its first-quarter results beating analysts’ estimates. However, the stock is still trading far below the high of $37.30 it reached in February 2014. Pandora stock is currently trading at ~$7.