Pandora blames Apple Music for loss of 1.3 million subscribers in Q3
Pandora CEO Brian McAndrews told stockholders that the decline in users is short-term. Over the last few months, the trend for Pandora has been positive and the service now has 78.1 million active members. Like its rival Spotify, the vast majority of its users are signed up for the ad-supported free version of the service. For Q3, Pandora had a 30% year-over-year increase in revenue to $311.6 million, but suffered a loss of $85.9 million after making a payout to record companies following the settlement of a suit.
Apple Music does not offer a free ad-supported tier of service like Spotify and Pandora. What it does offer is a three-month free trial for new subscribers. After the three months is over, these trial subscribers have a choice of paying $9.99 a month for an individual plan, or $14.99 for a family with up to 6 members, or dropping the service. According to the latest numbers from Apple CEO Tim Cook, Apple has 6.5 million paid subscribers and 8.5 million that are taking part in the free trial.