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Pandora Charging $1 Monthly – Will You Pay

By Alex Wilhelm on July 13, 2009

How much music do you consume in a month? Personally, probably something on the order of eight hours a day, plus or minus. That puts my total intake at 240 hours monthly. Now, only a slight fraction of my total plays come from the internet, but I am beoming abnormal there. However, if you now stream more than 40 hours of Pandora a month, it is going to cost you. Exactly one dollar to be exact.

Pandora, the hugely popular and powerful music service is an internet darling. People have long flocked to its recommendation engine that roots out musical similarities and plays music that you will love. Like Facebook’s friend recommendation engine, sometimes it is so accurate as to be unsettling. Whatever the merit of the service, it has recently solved its royalty traumas, and is riding high on 35 million in funding.

Obviously this is not the full Pandora business model. Pandora makes sizeable monies from large invasive advertising, but this will offset the cost of their most expensive users. I suspect that Pandora is looking for one thing at the moment: profits.

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Comments

  1. I see absolutely no problem with this. If I ever start complaining about having to pay $1/month for a service as good as Pandora’s, I’m in trouble.

    With the abundance of options out there (MeeMix, Pandora, Last.fm, imeem, Launchcast [which is the only one in the list that injects ads], etc.), it’s difficult to imagine me using Pandora more than 40 hours each month.

    That said, though, I am slowly becoming addicted to using Pandora on my iPhone. So far, it’s the only Internet radio app I’ve found that works the way I want it to. Last.fm spends way too much time buffering, Launchcast (Yahoo!) doesn’t seem to offer “my” station in the iPhone app, imeem is difficult to set up and Meemix doesn’t yet offer an iPhone app.

    That leaves me with Pandora, which works exactly the way I would expect.

  2. I agree, it’s a very nominal fee for such a great music player. Plus avid users like myself, can eliminate the worry of an hourly cap each month by paying $9/year. How can your complain about that!? FYI – Pandora does inject ads, but they are short, and far and few between. All said and done, they are still my favorite.

  3. It’s not the $1 a month that gets me; it’s the $8.99 a month charge I would have to pay to use it on my AT&T Eternity (phone)….. I don’t get that jump from free all over the place to a buck a month to 9 bucks a month on my phone… that’s stupid.

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