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Pandora Is Striving to Compete with Apple Music and Spotify

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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.

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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.

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