The WSJ reports Spotify will offer free, ad-supported access to its streaming library on mobile devices for the first time. However, while the service will allow users to "play a limited number of songs on demand," it will "mostly serve up music based on the user’s input."
Thus far, Spotify has only provided free library access to PC users; free mobile users have been limited to Spotify's streaming radio service. However, that service, which has been around for nearly 18 months, is more of a direct competitor to Pandora (P -0.1%) than the library service.
Spotify currently claims 20M active users and 6M paid subs (many of them in Europe, where Pandora doesn't operate). Pandora, by comparison, had 72.4M active listeners in November, and 3.18M paid subs at the end of October.
This is far from the first time Pandora has sold off due to Spotify-related news. Shares currently +220% YTD.
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