What’s interesting about the new premium version of Pandora version is that it’s only $3 a month. That price is so low that they seem to be going for scale rather than profitability.
But is there really that much elasticity to the price? Are there really a lot of people willing to pay $3 but not $5?
Last.fm’s non-us, non-UK, non-DE price is also 3/month, albeit I think it’s Euros. Maybe 3 is a magic number.