Lurking inside Pandora’s latest quarterly earnings report is one of its biggest challenges: Fleeing listeners. The streaming music company–which saw its revenue grow 13% year over year–nonetheless reported a slight dip in active users from 78.1 million last year to 77.9 million.
Pandora hopes to reverse this trend by launching its own on-demand Spotify competitor later this year. While there’s no guarantee that Pandora will be able to convert lots of listeners into paying subscribers, providing the option may discourage people from closing the Pandora app whenever they want to save songs or dig deeper into an artist’s catalog. JPT