It was back in September that Pandora launched its $4.99-per-month, limited-ad subscription service called Pandora Plus. The company has been mainly promoting the service to current users, sending out promos to try to upsell them, without any additional expense. On Thursday, Pandora reported that service generated 375,000 subscribers by the end of the year.
The company is now in a phased rollout of its higher-tiered service called Pandora Premium. That service will cost subscribers $9.99. It’s expecting to do a bigger launch of the product next month.
Pandora now has 4.3 million paid subscribers. Pandora executives are expecting 9.5 million consumers to pay the $4.99 per month fee for Pandora Plus by 2020. And, 11 million consumers to pay $10.00 per month by 2020 for its Premium service. If those goals are met, Pandora expects to be a $4 billion business by 2020.
