Music streaming service, Spotify Ltd., plans to provide users with free radio features within the U.S. which will give Pandora Media Inc. competition. The ad-supported radio feature will be for listeners using mobile devices.
The Spotify's radio system becomes available today using Apple Inc.'s AppStore. It can be used on iPads and iPhones. Paid subscribers of the service will be able to listen to music without using the ads to do so.
Spotify gives users creative freedom to make their own radio stations by finding artists, genres, and playlists they favor. This is similar to what Pandora allows users to do.
Spotify Ltd. Believes that ad-supported radio at no cost will bring more users to the company. They are hoping that these users can later be turned into paying customers.
"We feel like the radio experience of just hitting play, leaning back and not controlling exactly what plays is core to a great music experience," Charlie Hellman, vice president of product at Spotify, said in an interview with Bloomberg News.
The company will allow users to also take music from various albums to add to their playlists.
"We're taking advantage of statutory rates in the U.S.," Hellman said. "We're collaborating with our label partners on how to bring this great experience to all users globally in the coming months. That's the goal."
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