Pandora officially entered the streaming arms race Thursday with the launch of a new premium tier called "Pandora Plus." For $5 a month, the tier allows users to skip and replay as many songs as they like without ads. Subscribers to "Pandora One," which "Plus" is replacing, will automatically be upgraded.

"Plus" will be available on iOS and Android smartphones. It represents a unique "inbetween" option than Spotify and Apple Music's $10-per-month premium streaming services. With newly signed deals with all major music publishers (except Warner), Pandora will launch its own standard $10 streaming service before the end of the year.