Pandora Media Inc. (NYSE:P) is developing and coming up with a service of music streaming. This service will be requiring users to subscribe, including those who are not even able to pay the cost that rivals are charging.
A few customers would prefer to subscribe and pay the subscription charges every month to avoid unnecessary advertisements. But there are a few music listeners who would not want to pay some dollars monthly rather they would tolerate irritating ads. Pandora Media Inc. (NYSE:P) is working for such users and would make them pay a least amount of approximately less than a dollar to listen to a song instead of getting a whole album. Many companies in music industry are scuffling in making new payment schemes that would enable even the most sensible customers to pay for the song they are going to listen and for the provision of other services.
The chief executive officer of Pandora Media Inc. (NYSE:P), Mike Herring gave his point of view about this scheme. He said that the company would have to research and investigate a lot about this micro-billing system which would accept a small payment and permit a few services and some other options against the cost.
The CEO Mike Herring was also asked about this idea on a conference call to the investors according to Music Business Worldwide. There was a chance that Pandora Media Inc. (NYSE:P) might sell a subscription without advertisements for 24 hours for an amount less than a dollar. Because while playing music on Pandora Media Inc. (NYSE:P) no one would want any advertisement sounds with the music during any dinner or on the sound system during a party to ruin it.
Standard subscriptions for the ones paying the cost are still aimed so this initiative of minute charges might not be the foundation for the financial policy of Pandora Media Inc. (NYSE:P). This plan might arise some other way of company’s advertisements.
Customers interested in games may not pay a certain amount may be ranging from $5 to $10 on a game but they must be interested in purchasing gaming accessories included within their game or improving their levels or unlocking the levels and new players for their favorite games. For this very reason, this scheme of paying less and still getting facilitated by some services that is the micro-billing system, has been appreciably successful and at the lead in the gaming industry of mobile phones. Installation of any game requires a certain amount of money. However, consequences of this Business Model of Pandora Media Inc. (NYSE:P) were a massive revenue generation as compared to one-time charges in installing a game. On the other hand, considering a music industry, it should be looked into and should develop such master plans for their revenue growth and to be successful in latest business model of subscription for music avoiding irritating advertisements while paying charges less than a dollar.
