Is This Move By Pandora A Huge Mistake?

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Posted 3 years ago


Is This Move By Pandora A Huge Mistake?Pandora has decided to raise their monthly fees, while at the same time, eliminating annual subscriptions.

Is this a good move on Pandora’s part, especially in a space that has win-at-all-costs competitors like Spotify?

Giving customers flexibility concerning payment methods is usually the best approach for sustaining growth.

As posted on Pandora’s blog:

“Existing Pandora One monthly subscribers that remain active will not experience a price increase at this time and will continue to pay $3.99 per month. For new subscribers, the subscription price will change to $4.99 per month starting in May. Existing annual subscribers that remain active will migrate to a discounted loyalty price of $3.99 per month at their next renewal period. We are ending the annual subscription option.”

Pandora also states, “Over this same period, the costs of delivering this service have grown considerably…this affects only a small percentage of our listeners…we hope that you understand why we have taken these steps.”


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