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Spotify creating online radio service to rival Pandora

Written by Andre Yoskowitz (Google+) @ 26 Apr 2012 18:31 User comments (1)

Spotify creating online radio service to rival Pandora According to sources, Spotify is creating an Internet radio service that will rival Pandora directly in the U.S.
The new format will launch by the end of the year and will be supported by advertising. Pandora is cheaper to operate than Spotify currently is because the royalty rates are lower and standardized by Congress.

Spotify currently has 10 million registered users around the globe, 30 percent of which are paying subscribers. Pandora, which launched just a year earlier than Spotify did in 2006, has 150 million registered users in the U.S. alone, with 50 million active.

How Pandora works is users can choose an artist, genre or specific track and the service will identify songs with similar melodies (and more) and create a playlist. Just like traditional radio, you cannot choose the tracks you hear. With Spotify, the entire catalog is available to you along with the ability to creat playlists from the tracks you want.

Differentiating the services is the fact that all music is available on Pandora, from all artists, while Spotify is missing music from artists like the Beatles and others. Spotify is also at the whim of the labels and artists, who can withhold new releases if they want to, or delay them.

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1 user comment

14.5.2012 9:33

Pandora is to music as Google once was to web searching, several generations ahead of the competition. Even with Google regressing it is still way ahead of the pack. I haven't tried Spotify but I read you or your friends pick what you want to hear. It MIGHT be one step up from the radio. Pandora can fairly accurately predict what you would like to hear, introducing you to unknowns. Pandora is several magnitudes more accurate picking winners from unknowns than the labels. If the labels had any whit at all they would pay Pandora to tell them who should be promoting. If they did they might even become profitable again.

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