Pandora to Remove 40-Hour Free Listening Limit Ahead of iTunes Radio Launch

App-Store-Pandora-Radio.pngDuring today's earnings call, Pandora CFO Mike Herring said the company will again allow unlimited listening via mobile devices, eliminating its recently implemented monthly cap. First introduced in February, Pandora's 40-hour per month limit was put in place as a direct result of increased royalty rates.

While desktop Pandora listeners were able to listen to unlimited music, mobile users that exceeded 40 hours had to subscribe to the Pandora One service at $36/year or pay a small fee.

According to Herring, both increased advertising income and and tighter control over other cost saving techniques have allowed the cap to be lifted. TechCrunch has a transcript of the call:

Our investment in advertising infrastructure and implementing smart levers such as reducing song skipping and limiting mobile listening have helped us drive monetization and manage content costs, as reflected by the increase in RPM and a decrease in content costs as a percentage of revenue

As our results have shown, the continued strong growth in our advertising revenue allowed us to cover the increased royalty costs with dollars left over to invest back into the business. With these tools in hand, and insight into how they work, we are resetting our levers in September. Notably, Pandora plans to eliminate the blanket 40-hour-per-month limit on free mobile listening effective September 1st.

September will also see the debut of Apple's iTunes Radio, which is bundled into iOS 7. iTunes Radio will be ad-supported for all subscribers, though ad-free service is available for iTunes Match subscribers. iTunes Match includes iCloud syncing for music acquired outside of iTunes and is priced at $25 annually -- significantly cheaper than the $36 Pandora One.

Pandora CEO Joe Kennedy told AllThingsD that the company is not worried about the launch of iTunes Radio:

"We've now been around for eight years. We've seen competitors large and small enter the market and, in some cases, exit the market. I've never seen an analysis that identifies an effect from any competitor … we don’t see the picture changing."

Pandora has reported revenues of $162 million, up 58% year over year. Its 40-hour listening cap will be eliminated on September 1, less than two weeks before iTunes Radio and iOS 7 are expected to be unveiled at Apple's September 10 iPhone event.

Top Rated Comments

viperGTS Avatar
119 months ago
Not worried about iTunes Radio? Please. :rolleyes:
Score: 18 Votes (Like | Disagree)
BHP41 Avatar
119 months ago
They should be worried. It come with every Apple product starting this fall. New users, who's going to download, create ANOTHER account to have something that comes stock?? Not to mention how much easier its going to be for runners,bikers,in the car, to just switch from radio to playlists or albums. Pandora will lose a major source of revenue. After all, iOS users spend more than any other user base.
Score: 14 Votes (Like | Disagree)
Markiie Avatar
119 months ago
Love how they say "We're not worried".....really?

So you decided to make this change all of a sudden huh? lol.
Score: 13 Votes (Like | Disagree)
appleisking Avatar
119 months ago
I could see why they may be worried. Ios has a huge user base so iTunes Radio is a competitor. Another example of how competition benefits the consumer :cool:
Score: 13 Votes (Like | Disagree)
jyen Avatar
119 months ago
Pandora's box has been opened...
Score: 10 Votes (Like | Disagree)
cclloyd Avatar
119 months ago
I've never even hit the 40 hour limit before.
Score: 10 Votes (Like | Disagree)

Popular Stories

USB C Over Lightning Feature

EU Passes Law to Switch iPhone to USB-C by End of 2024

Tuesday October 4, 2022 3:30 am PDT by
The European Parliament today voted overwhelmingly in favor of enforcing USB-C as a common charging port across a wide range of consumer electronic devices, including the iPhone and AirPods, by the end of 2024. The proposal, known as a directive, forces all consumer electronics manufacturers who sell their products in Europe to ensure that a wide range of devices feature a USB-C port. This...
ipad pro purple

Five Apple Products You Should Avoid Buying Right Now

Wednesday October 5, 2022 2:12 pm PDT by
Rumors suggest that Apple still has several new devices that are coming before the end of the year, including a range of Macs and iPads. It's not looking like we're going to get an October event in 2022, but refreshes are coming soon, probably via press release. If you're planning to buy a Mac or an iPad, make sure to check out our list to know what's safe to pick up now and what's not. iPad ...
General iOS 16 Feature Yellow

10 New iOS 16 Features Coming Later This Year

Monday October 3, 2022 2:41 pm PDT by
iOS 16 was released to the public three weeks ago with a customizable Lock Screen, the ability to edit iMessages, improvements to Focus modes, and much more. And in the coming months, iPhone and iPad users have even more new features to look forward to. We've rounded up 10 new features coming to the iPhone and iPad later this year, according to Apple. Many of the features are part of iOS...
magsafe charger orange

Apple Releases New MagSafe Charger Firmware

Tuesday October 4, 2022 12:09 pm PDT by
Apple today released updated firmware for the MagSafe Charger that is designed to work with the iPhone 12 and later and the AirPods Pro 2. The new firmware is version 10M1821, up from the prior 10M229 firmware. Note that in the Settings app, you'll see a different version number than the firmware number, with the update displayed as version 255.0.0.0 (the prior firmware was 247.0.0.0). The...
maxresdefault

Video: AirPods Pro 2 vs. Bose QuietComfort II

Monday October 3, 2022 12:50 pm PDT by
Apple on September 23 officially launched the second-generation version of the AirPods Pro, introducing updated Active Noise Cancellation, Adaptive Transparency, improved sound, and more. Right around the same time, Bose introduced new QuietComfort II earbuds with many similar features, so we thought we'd compare the two to see which has the edge. Subscribe to the MacRumors YouTube channel for ...
General iOS 16 Feature Yellow

One of iOS 16's Best Features Drains Battery When Enabled

Thursday October 6, 2022 2:15 am PDT by
One of iOS 16's most praised features comes at the cost of draining battery life, according to recently published Apple support documents. The feature, known as "keyboard haptics," is optional in iOS 16 and allows users to get physical feedback via slight vibrations upon the touch of each key, confirming that it was pressed much like keyboard sounds. The feature is a useful addition to the...
aapl logo banner

No October Apple Event Expected Despite Upcoming Wave of New Devices

Wednesday October 5, 2022 2:33 am PDT by
Apple is no longer expected to host an event this month, despite plans to unveil a host of new devices including new iPad and Mac models, according to recent reports. In recent months, Apple has been expected to hold an event in October to announce a range of products that did not receive any stage time during the company's iPhone 14 unveiling event last month. In a recent newsletter, Bloombe...
iOS 16

Apple Preparing iOS 16.0.3 With More Bug Fixes Following iPhone 14 Launch

Monday October 3, 2022 7:53 am PDT by
iOS 16.0.2 was released last month with several bug fixes for iPhone 14 issues, excessive copy and paste permission prompts, and more. Now, evidence suggests that Apple is planning to release iOS 16.0.3 with additional bug fixes. Evidence of an upcoming iOS 16.0.3 software update has shown up in MacRumors analytics logs, which have been a reliable indicator in the past. There are several...
iOS 16

Apple Seeds New Betas of iOS 16.1 and iPadOS 16.1 to Developers [Update: Public Beta Available]

Tuesday October 4, 2022 10:06 am PDT by
Apple today seeded the fourth beta of iOS 16.1 to developers for testing purposes, with the beta coming one week after the release of the third iOS 16.1 beta. The iOS 16.1 beta is also joined by the fifth beta of iPadOS 16.1, which is on a slightly different schedule as Apple started testing it prior to the launch of iOS 16. Registered developers can download the iOS 16‌ and iPadOS 16...
dynamic island outline 1

iOS 16.1 Beta Adds More Pronounced Gray Border Around Dynamic Island When Using Black Wallpapers or in Dark Mode

Tuesday October 4, 2022 11:58 am PDT by
With the latest iOS 16.1 beta, Apple has tweaked the design of the Dynamic Island on the iPhone 14 Pro and Pro Max to make it more visible on a dark background. When using a darker wallpaper or with the darker interface of Dark Mode activated, there is a light gray border around the outside of the Dynamic Island when the screen is dimmed or when the Dynamic Island is in active use. The...