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Slacker Radio Launches With Hopeful Future

Slacker has just launched its premium online radio service, giving users unlimited song skips without any ads for just $4 a month, as part of its existing Radio Plus service. If you do the math, that’s just $12 more per year than Pandora, which only allows you 6 song skips per station per hour (the hour is real-time, not time spent on Pandora). What’s new is for $10 a month, users can play any song in Slacker’s music library whenever they’d like.

Slacker’s SVP of marketing, Jonathan Sasse has shown the premium version work flawlessly on Slacker’s new iPad app and that Slacker radio is better than competitors because it gives consumers a wide range of pricing options.

The company makes money from the two pay services and then treats the free version as a marketing tool, with free ads to offset the costs. Sasse knows that the service isn’t profitable yet, but with the new business model in place it is now profitable for each new user which allows it to focus on growth. Slacker Radio currently has 25 million registered users and has already raised $70M from investors. I’ve never used the radio service so I cannot attest to it being better than Pandora, in terms of artist and song selection, but I’ll check it out and give my thoughts!

Photo Courtesy of Michael@NWLens
Photo Courtesy of kallao