Pandora Acquires Something Huge To Challenge Spotify

Pandora Media Inc. just acquired licenses to music from not one, but three, of the world’s largest right holders. These licenses will help create two new subscription services that could help Pandora complete against other providers like Apple Music and Spotify.

Pandora said in a statement on Tuesday that Sony Music and Universal Music, the two largest labels, and Merlin Network, which represent rights for more than 20,000 independents, have agreed to the licenses.

Warner Music, the third-biggest, has yet to reach an accord with Pandora.

So what do these deals mean for the streaming music company? They ensure that Pandora can introduce two new services it has been developing: an advertising-free radio service called Pandora Plus and an on-demand service that is similar to Spotify and could challenge it.

Pandora has said it plans to begin selling both to users before the end of the year.

Disclaimer: We have no position in Pandora Media Inc (NYSE: P) and have not been compensated for this article.