Compare Pandora’s original business model with its current business model. What’s the difference between “free” and “freemium” revenue models? In the beginning Pandora tried to get music subscriptions by giving people 10 free hours, then requesting them to pay $36 a month after that for the service. Of sure no-one was ready to pay so much for a service that they could get for free by transferring on an FM radio. After that model failed, they experimented with a variety of other options before settling on the "freemium" model they use today. A freemium service makes the basic service available to everyone for free, but with strict bandwidth restrictions and ads in between songs, resulting in a lower-quality listening experience. What is the customer value proposition that Pandora offers? Pandora gives its customers access to music through the “Music Genome Project,” which was founded by Pandora's founders and provides a way to classify music so that simi...