Pandora Limits Free Mobile Listening to 40 Hours

From The Hollywood Reporter:

Frequent Pandora mobile music listeners will soon start having to pay up — or switch to a desktop or laptop. On Wednesday, the Internet radio service announced a cap of 40 hours per month of free listening for those using mobile and tablet devices.

In a note on the company’s blog, founder and chief strategy officer Tim Westergren wrote that the move was “very unusual” but that the high per-track royalty rates paid out forced Pandora to make the decision.
“Pandora’s per-track royalty rates have increased more than 25 percent over the last three years, including 9 percent in 2013 alone and are scheduled to increase an additional 16 percent over the next two years,” Westergren explained. “After a close look at our overall listening, a 40-hour-per-month mobile listening limit allows us to manage these escalating costs with minimal listener disruption.”

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