Pandora to impose 40-hour listening limit for free mobile users

Pandora raking it in with mobile ads

Pandora is struggling to pay royalty fees and it looking to mitigate that cost by limiting the amount of time mobile users on a free account can listen to music. According to a Wall Street Journal report, Pandora will limit mobile listening on a free account to 40 hours each month. This change should only affect 4% of Pandora users as most  users only consume 20 hours across all devices each month.

Pandora co-founder Tim Westergren justified these changes by noting that royalty rates have skyrocketed 25% in the past three years and are slated to go up another 16% in the next two years. Westergren argues that this new limit is the company’s best option to “manage these escalating costs with minimal listener disruption.”

[Via WSJ]

 

  • Nick V

    That’s okay. Google is working on their Streaming Service, which will fix this issue.

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