In the face of fierce competitors from Spotify and Apple Music, Pandora has been rising its in-app subscription revenues, in keeping with new data from Sensor Tower. The streaming music service earned the primary spot on the chart of top grossing apps in Q3 2017, excluding games. It’s the first time Pandora has held that place since the third quarter of 2015.
Fueling the music app’s rise was this 12 months’s launch of its Premium tier, which arrived in March in invite-only mode earlier than changing into broadly available to customers in April.
Pandora Premium is the firm’s personal take on on-demand music, providing a mixture of the radio-like listening Pandora is understood for, together with the capability to go looking out and play tracks on demand and add them to playlists. The service prices $9.99 per thirty days, which can be the going fee for Pandora’s rivals, Spotify and Apple Music.
As well as, Pandora presents a mid-tier service referred to as Pandora Plus, which debuted in fall 2016. For $4.99 per thirty days, customers can skip and replay extra songs, hear offline, and keep away from promoting.
Pandora achieved its rating as the primary app by revenue in the U.S. in Q3 by grossing $80 million throughout the quarter.
That pushed it forward of Netflix, which has held the top rating on this chart for a number of quarters. Nonetheless, Netflix was nonetheless the primary app by revenue globally (once more, excluding games) in Q3.
Pandora’s $80 million determine additionally represents 142 p.c revenue progress over the similar quarter final 12 months, when Pandora’s estimated gross revenue was $35 million.
To be clear, Sensor Tower’s look into app store revenue is just contains in-app spending, which doesn’t paint a picture of Pandora’s enterprise as an entire. Along with subscriptions, which may also be purchased on the net, Pandora has a free tier powered by advertisements. That enterprise grew its revenue 5 p.c year-over-year as of Pandora’s final earnings, whereas subscription revenue was then up by 25 p.c.
Pandora’s earnings reported in July had been higher than anticipated, following 1 / 4 that noticed numerous chaos, together with the exit of CEO Tim Westergren amid an organization shakeup, and the infusion of $480 million from SiriusXM, after Pandora stopped purchasing for a purchaser.
The corporate is about to announce earnings right this moment, with new CEO Roger Lynch delving into his plan for Pandora going ahead. This may occasionally embrace a stronger focus on Pandora’s radio enterprise, Barron’s reported in an earnings preview.
Analysts expect that Pandora misplaced 8 cents per share in the previous quarter on revenue of $380 million, it additionally mentioned.
The expansion in non-game app revenue will not be a pattern that’s distinctive to Pandora. Sensor Tower additionally discovered that worldwide shopper spend in non-gaming apps elevated from roughly $1.7 billion throughout Q3 2016 throughout each Google Play and the iOS App Store, to achieve $2.8 billion in Q3 2017.
App Annie had additionally previously reported file app revenue globally. Its whole, which incorporates games, was almost $17 billion.