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Pandora plans to offer new day pass for ad-free music access

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Pandora is looking for ways to come out on top of rising music licensing costs. The company has confirmed to Gigaom that it plans to release a new day pass subscription offering that unlocks access to ad-free internet radio for a short period. The new pricing model, which should arrive later this year, could cost 99 cents for one day of access, an executive said during an investor call this week. The company is still tweaking the pricing and length of on-demand ad-free access.

In a statement, a spokesperson tells Gigaom that "this offering will allow consumers to choose and explore what is right for them or suits a particular event or experience. Pricing and exact timing are yet to be determined but we expect it to be available later this year." The company envisions that the service might be useful to those who don't mind listening to interruptions during the day but want ad-free music when they throw a party.

The company's current premium service costs $4.99 per month, and includes higher-quality audio, more skips, and an ad-free experience. The company raised the price from $3.99 last year. Nevertheless, the vast bulk of the company's revenues come from advertising, not subscription premiums. Last quarter, subscriptions revenue was less than a quarter of the revenue received from advertisers.