Spotify is planning to launch a radio service similar to Pandora, according to reports.

The startup has began reaching out to potential content partners, says Bloomberg, which cites “two people with knowledge of the situation.” It plans to launch the service before the end of the year.

Spotify users build libraries of online music that can be streamed at any time from their desktops and mobile devices. Pandora, on the other hand, asks users to choose an artist, song or genre and then streams songs that it thinks fit that category. Users can’t control which songs they hear when.

The advantage of streaming music the Pandora way is radio licensing. Federal rules set the royalties that Pandora pays per song, and the startup has access to all published music — even those who have chosen to withhold their music from services like Spotify.

Spotify, meanwhile, makes content deals with individual labels and can’t play songs from labels with whom it doesn’t have a relationship.

While the service already has a radio app that lets users create artist- or song-based stations, that app does not have the same advanced features as Pandora. Nor does it necessarily pay preferable radio royalty rates.

Launching a radio service would increase the number of songs that Spotify listeners could access.

Spotify makes money from advertisers on its free service as well as from paid subscribers, who pay $9.99 per month for access to their libraries on their mobile phones and offline. It recently launched an advertising partnerships with Coca-Cola and has turned about 20% of its at least 10 million users into paid subscribers. The startup raised a $100 million round of funding last year.