Pandora inks final major label deal; launches new cheaper service

Pandora has signed a licensing deal for the United States with Warner Music Group, the last of the majors to hold out.

The two companies jointly announced this morning, “This agreement enables both companies to support artists and satisfy the full range of music listening experiences for consumers.”

This brings Pandora’s full streaming service a step closer. Apparently Warner held out for better streaming rates for its artists.

In America, Warner Music’s catalogue includes Coldplay, Madonna, Bruno Mars, Diddy, Ed Sheeran, Michael Buble, Prince, Green Day, Enya, The Eagles, Garbage, Fleetwood Mac, Craig David and Wiz Kalifa, as well as Australia’s The Living End, Hoodoo Gurus, Pendulum, Savage Garden, The Amity Affliction and Airbourne.

CEO Tim Westergren said, “Warner has been a tremendous partner to Pandora and we’re thrilled to expand the relationship in a way that truly supports both of our businesses and the artists we serve.

“With this agreement, we’re on a path to launch the world’s most personal and complete music experience that our listeners will love.”

More than 78 million users listen to over 24 hours per month to Pandora’s ad-supported and subscription offerings – which it claims is “more than twice the engagement of all other streaming services.”

Overnight Pandora rolled out a new version of its ad-free internet radio service. It allows subscribers to replay songs, skip more of them and listen offline for the same US$4.99 monthly price. Those who opt for the ads give advertisers a “more engaged and attentive audience,” according to the release.

Pandora Plus, as the new tier is called, replaces the original Pandora One, which alone had 4 million subscribers – which is a fraction of its total 80 million paying customers. They will be moved to the new tier over the next few weeks.

The new tier marks the first time in the 16-year-old company’s first offering for which it licensed music directly from the major record companies. Until now, Pandora has been using compulsory licenses issued by the Government which have allowed it to pay rates determined by federal judges.

Pandora is hoping that the enhanced ad-free experience will see more consumers enticed away from the $10 monthly fee charged by the likes of Spotify and Apple Music. These however offer up to 40 million tracks. Pandora has had two million, although it is not sure how that figure has risen after its recent label licensing deals.