Music streaming service Spotify is adding a new feature to their iPhone and iPad app: free radio.  Yes, Spotify gearing up to take on Pandora in the mobile space.

Spotify updated their iOS app, which includes a new radio feature that gives their free users access to unlimited amount of music while on the go.  The only catch is, it comes with ads. Paying customers, of course, won’t be bothered with ads from Chevrolet, Durex, Heineken, Red Stag by Jim Beam, Lipton Iced Tea, Macy’s, McDonalds, Progressive, Red Bull, Taco Bell, Verizon Wireless, and Warner Bros, all of whom are Spotify partners.

The new radio feature for iOS is seamlessly integrated into the Spotify service, creating an unmatched user experience of listening, discovering, saving and sharing music, from a catalog of more than 16 million songs.

The updated Spotify iOS app now enables users to:

• Create limitless streaming radio stations from single songs, playlists, albums or artists
• Create an unlimited number of stations and listen as long as they like
• Save tracks to Spotify playlists – any song that users “like” will be saved, so they can find the songs later
• Personalize stations in real time by “liking” tracks to hear similar music
• Browse friends’ playlists and create radio stations based on their tastes
• Hear great new songs from Spotify’s state-of-the-art recommendation engine, based on what millions of real people are listening to
• Access a catalog of over 16 million tracks

“Our focus has always been on creating an amazing user experience,” said Charlie Hellman, VP, Product at Spotify.  “The radio feature we’ve added to our iPhone and iPad apps gives users the ability to discover, listen and save what they like on the go – all within one app – for free.”

Premium users paying $9.99 a month will have the luxury of skipping as many songs as they want, aside from not being pestered with ads.  But free users would have to endure two to three minutes of commercials each hour and only be able to skip six songs every hour.