Web based music streaming service Pandora has begun streaming something in addition to music: ads.
Now, you might not notice the ads at first. They're only about 15 seconds long, not every user will be hearing them right away, and Pandora CEO Tim Westergren says the average user will only hear about one ad every two hours. But the move does represent a potential new revenue stream for Pandora, which like other internet broadcasters is facing rising royalty rates for streaming music in the US.
This isn't the first time the company tried streaming audio ads in addition to the display ads that show up on the Pandora web page. Back in 2007 Pandora tried a similar experiment, but decided to cancel it due to negative feedback from users.
What do you think? Are you willing to put up with 15 seconds of advertising for 2 hours of free music? Or do you think this is a slippery slope toward 20 minutes of advertising every hour? Would you rather pay $36 a year for an ad-free service?
