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Spotify Takes On Web Radio Giant

The music service is now offering Pandora-style radio for iPhones and iPads.
Spotify founders Daniel Ek and Martin Lorentzon
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Spotify looks ready to move onto Pandora's turf.

The music-streaming service has announced a new ad-supported radio function for iPhone and iPad, which will allow listeners to customize mobile radio “stations,” a model similar to Pandora’s.

Both Spotify and Pandora offer free streaming options for consumers willing to put up with ads, with paid upgrades available to eliminate them.  Although Spotify’s numbers currently trail far behind Pandora’s (Spotify has 10 million registered users, Pandora has 150 million), the mobile radio addition could help turn those tables, Bloomberg reports

Like Pandora, Spotify can offer its radio service for free because paying artist royalties through SoundExchange keeps streaming costs low, according to Bloomberg.  However, unlike Pandora (which can only be used in the U.S.), Spotify also has content deals with the likes of Sony Music, Universal Music, and Warner Music Company, allowing it to release its radio app overseas for premium subscribers, reports Bloomberg.

“We’re collaborating with our label partners on how to bring this great experience to all users globally in the coming months,” Spotify's vice president of product, Charlie Hellman, told Bloomberg.




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