Pandora’s Stable Subscription Plan is Working
Pandora is one of the first music streaming app of its kind, even though it’s not that noted as its European peer Spotify or bigger player Apple Music in recent years.
Its business is actually doing very well with the solid subscription model. In fact, Pandora is one of the top 10 grossing apps in the world in 2018, despite the fact that it’s only available in the US. According to MAI Intelligence, its performance in the first quarter this year is also quite outstanding.
Currently, Pandora offers two types of paid service: Pandora Plus which costs $4.99 per month and Pandora Premium which costs $12.99 per month (on Android it’s $9.99). According to MAI Intelligence, more users chose the Pandora Plus plan, as 64.1% of its paying users are subscribers of Plus.
As a subscription app, Pandora’s retention rate has been relatively stable, from Jan 1 2018 to May 1, 2019. The monthly retention rate of Pandora paying user could be as high as 72.41%, and the average purchase return period for its Pandora Plus subscription is 40.73 days.
Another reason for Pandora’s stable success might be its loyalty to the App Stores. Unlike its peer Spotify who asks users to pay for subscription within its own account system from its own web page, Pandora has been quite loyal to Apple and Google. Users can only pay through Apple’s App Store or Google Play’s account, even though the company would lost a cut of its revenues.
As to features, Pandora now offers both music and podcasts contents, unlimited replay and the ability to search and play any song.
About MAI Insights
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Charlie Sheng is a serial female entrepreneur, and a dedicated communicator for technology. Charlie specializes in trends and insights for the App Industry, with MAI Insights’ real-time online consumer data panel. You can reach her at [email protected]