Existing "Pandora One" users will be upgraded to the new service, the company said.
Pandora Plus, as well as the new features available on the ad-supported tier, will launch today and roll out to listeners in the coming months on iOS and Android smartphones. For listeners in Australia and New Zealand, the new Pandora Plus and ad-supported features will be available in 2017.
Apple Music and Spotify offer music streaming plans starting at a monthly subscription fee of $9.99.
As part of this product transformation, new features will also enhance Pandora’s existing ad-supported option. Listeners will now have more control over their advertising and listening with the ability to skip more songs and replay songs y opting into a video ad. Advertisers in turn will benefit from a more engaged and attentive audience.
Pandora also plans to launch an on-demand streaming service later this year.
Earlier this month, Pandora signed direct licensing deals with a number of music labels on Tuesday, including heavyweights Sony Music and Universal Music Group.