Pressuring Pandora, Spotify Unveils Free Mobile Radio Service

By FOXBusiness

Turning up the heat on Pandora (NYSE:P), music-subscription service Spotify launched a free mobile radio platform in the U.S. on Tuesday.

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The move will give free users the ability to create radio stations based on songs, playlists, albums or artists and stream from a catalog of more than 16 million songs. Previously Spotify charged users $10 a month for the service.

Unlike Pandora, users will also be able to save tracks that they “like” to play them at a later date.

“The radio feature we've added to our iPhone and iPad apps gives users the ability to discover, listen and save what they like on the go -- all within one app -- for free,” Charlie Hellman, vice president of product at Spotify, said in a statement.

Unfortunately for users of Google’s (NASDAQ:GOOG) Android and Research in Motion’s (NASDAQ:RIMM) BlackBerry, this new service will initially only be available on Apple’s (NASDAQ:AAPL) blockbuster iPhone and iPad devices.

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The Spotify announcement weighed on shares of Oakland-based Pandora, which offers a free radio service on all mobile platforms and on other devices. Shares of Pandora, which went public last year, declined 2.53% to $11.18 Tuesday morning.

U.K.-based Spotify said the free radio service will include advertisements from a slew of partners, including McDonald’s (NYSE:MCD), Macy’s (NYSE:M), General Motors’ (NYSE:GM) Chevrolet, Yum! Brands’ (NYSE:YUM) Taco Bell and Progressive (NYSE:PGR).

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