Crowdsourcing can be defined as a collaborative process which typically involves completing a project (task) and solving a problem through a group of people (crowd) that are geographically dispersed over the internet.
Basically, crowdsourcing refers to an outsourcing technique which allows a project or task to be jointly completed by a group of people (crowd) such as volunteers or freelancers who are made to work remotely over the internet.
In this scenario, an online music provider such as Pandora or Jango uses crowdsourcing for collaborative filtering, which helps define the list of songs available to listeners.
Software as a Service is the technology that has been used here in the given excerpt.
Software as a service is a model in which the software is distributed through a third party who will host the application software on the internet through a web interface medium called website.
This website will be the front end where the application will be given a service. The provider will take care of the performance, security and availability of application over a cloud based computing technology.
The main advantage of this service is saves time, cost and user friendly usage and maximise the profit.