iHeart, traditional radio titan, takes on Spotify too

From CNET: The lifeblood of iHeart is still radio, now pumped with options for the digital age.

iHeartMedia, the biggest terrestrial radio company in the US and operator of online service iHeartRadio, launched two streaming memberships in a beta "test" mode Thursday, giving customers ways to unlock more access to tunes.

A $5-a-month "Plus" membership lets you replay songs you hear on a station's live stream, listen offline and skip songs in a digital playlist. A $10-a-month "All Access" subscription opens up a full buffet of all-you-can-eat music.

The move throws iHeart into an intensifying competition for streaming-music customers. In the last three years, consumers have shifted from digital downloads to memberships that charge a monthly fee for unlimited access to tens of millions of songs. The change has made subscriptions the music industry's dominant sales model and lifted revenue for recorded music to its best growth since the age of the CD. That growth has stoked competition among the tech companies racing to deliver music to paying subscribers.

Pandora, iHeartRadio's main competitor in digital radio, is in the midst of rolling out similar services. In September, it began letting any nonpaying listener skip or replay songs, and it launched a $5 membership, also called "Plus," that stripped out all advertising and that caches several playlists to allow listening offline. It will launch a full, play-whatever-you-want subscription this month. Pandora has about 78 million monthly active listeners.

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