Pandora gains Warner Music for its revamped $5 service
Update: This story has been updated to include an agreement between Pandora and Warner Music Group for the streaming radio provider's revamped Pandora Plus service.
The long-rumored changes coming to the streaming service are real as the company announced on that it would be introducing an updated offering called Pandora Plus.
The $4.99 per month offering -- half the price of Apple Music or Spotify's premium offerings -- will let users replay songs, skip more tracks and save music for offline listening without any ads.
The streaming music service is slowly adding current Pandora One subscribers on Android and iOS mobile devices to the new product, with about 1% getting an update. The update will roll out on desktop and other devices within the year.
Pandora's ad-based free offering will also see a revamp, allowing users to replay tracks and skip more songs if they watch an ad.
Pandora's free option is the company's most popular option, accounting for most of its 80 million users.
A full-blown Apple Music competitor, which would offer more on-demand options for $10 monthly, is expected to be announced later this year.
“We’re methodically and passionately developing the world’s most personal music experience,” said Pandora CEO and founder Tim Westergren in a statement. “And that includes flexibility in how you listen and what you pay for it. Whether a listener wants to take advantage of our enhanced ad-supported experience, our groundbreaking subscription radio service, or our fully interactive on-demand option coming later this year, we have a solution tailored for you at a price point you can afford."
Pandora has been prepping for the move, last week announcing that it had reached agreements with several of the major music labels including Sony and Universal.
Later Thursday, Pandora said that it had reached a deal with Warner Music, which represents Madonna, Metallica, the Red Hot Chili Peppers and several other big acts including Coldplay and the late Prince. "Pandora has built a huge audience with a compelling product and we’re looking forward to new and enhanced subscription services for music fans and improved monetization for our artists,” said Ron Wilcox, Warner's executive counsel for business affairs, strategic and digital initiatives, in a statement.
Shares of Pandora (P) were up more than 2% in after-hours trading Thursday to $13.60.
Follow Eli Blumenthal on Twitter: @eliblumenthal.