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
104 months ago
Not worried about iTunes Radio? Please. :rolleyes:
Score: 18 Votes (Like | Disagree)
BHP41 Avatar
104 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
104 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
104 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
104 months ago
Pandora's box has been opened...
Score: 10 Votes (Like | Disagree)
cclloyd Avatar
104 months ago
I've never even hit the 40 hour limit before.
Score: 10 Votes (Like | Disagree)

Top Stories

REC ASA CODE2016 20160601 205816 2745

Elon Musk Reportedly Demanded to Become Apple CEO as Part of Potential Tesla Acquisition [Update: Musk Denies]

Friday July 30, 2021 9:04 am PDT by
Tesla CEO Elon Musk reportedly once demanded that he be made Apple CEO in a brief discussion of a potential acquisition with Apple's current CEO, Tim Cook. The claim comes in a new book titled "Power Play: Tesla, Elon Musk and the Bet of the Century," as reviewed by The Los Angeles Times. According to the book, during a 2016 phone call between Musk and Cook that touched on the possibility of ...
General Apps Messages

Android iMessage Competitor Puts Pressure on Apple

Friday July 30, 2021 3:15 am PDT by
Google and the three major U.S. carriers, including Verizon, AT&T, and T-Mobile, will all support a new communications protocol on Android smartphones starting in 2022, a move that puts pressure on Apple to adopt a new cross-platform messaging standard and may present a challenge to iMessage. Verizon recently announced that it is planning to adopt Messages by Google as its default messaging...
a15 chip

iPhone 13 and Redesigned MacBook Pro Chip Production Hit With Gas Contamination

Friday July 30, 2021 5:44 am PDT by
The most important TSMC factory that manufactures Apple's chips destined for next-generation iPhone and Mac models has been hit by a gas contamination, according to Nikkei Asia. The factory, known as "Fab 18," is TSMC's most advanced chipmaking facility. TSMC is Apple's sole chip supplier, making all of the processors used in every Apple device with a custom silicon chip. Industry...
Apple watch series 5 new case material made of titanium 091019

Titanium Apple Watch Series 6 Models Currently Widely Unavailable

Sunday August 1, 2021 6:21 am PDT by
Models of the Apple Watch Series 6 with titanium cases part of the "Apple Watch Edition" collection is currently widely unavailable for pick-up in several of Apple's retail stores in the United States and is unavailable entirely for delivery in major markets. Noted by Bloomberg's Mark Gurman in the latest edition of his "Power On" newsletter, titanium models of the Apple Watch Series 6,...
iPhone 13 Always On Feature

iPhone 13 to Bring Over a Major Feature From the Apple Watch

Wednesday July 28, 2021 2:21 am PDT by
Apple's upcoming iPhone 13 lineup will feature an always-on display akin to the Apple Watch Series 5 and Series 6, according to recent reports. In his weekly Power On newsletter, Bloomberg journalist Mark Gurman, who often reveals accurate insights into Apple's plans, said that the iPhone 13 may feature an Apple Watch-inspired always-on mode. The Apple Watch Series 5 and Apple Watch...
apple rtp land

Apple Preparing to Occupy 200,000 Square Feet of Temporary Space Ahead of New $1 Billion North Carolina Campus

Thursday July 29, 2021 9:14 am PDT by
Back in April, Apple announced a $430 billion investment over the next five years to create more than 20,000 new jobs as the company continues to expand. One significant piece of that plan is a new engineering and research center in North Carolina where Apple will be investing over $1 billion and hiring at least 3,000 employees. Assemblage of seven properties in Research Triangle Park owned by ...
telegram

Bumper Telegram Update Enables Video Calls With Up to 1,000 Viewers

Saturday July 31, 2021 12:13 am PDT by
Telegram Messenger has received a major update to its video capabilities, including support for video calls with up to 1,000 viewers. Group video calls in Telegram allow up to 30 users to stream video from both their camera and their screen, and now a maximum of 1,000 people can tune into the broadcast. Telegram says it intends to continue increasing this limit "until all humans on Earth...
app store blue banner

Elon Musk: Apple's App Store Fees Are a 'De Facto Global Tax on the Internet'

Friday July 30, 2021 10:04 am PDT by
Tesla CEO Elon Musk took to Twitter today to criticize Apple's App Store fees in a tweet that sides with Epic in the ongoing Epic v. Apple dispute. "Epic is right," wrote Musk, before going on to call Apple's App Store fees a "de facto global tax on the Internet." Musk earlier this week made veiled comments about App Store fees, but today's statement is a much more direct criticism....
FaceID iMac REREREREMIX

Top Stories: Face ID on Future Macs, Elon Musk Criticizes Apple, and More

Saturday July 31, 2021 6:00 am PDT by
This week saw an interesting range of Apple news and rumors, including a blockbuster earnings report, rumors about next year's "iPhone 14" and Face ID coming to Macs, and more. Subscribe to the MacRumors YouTube channel for more videos. Other popular topics included Apple's crackdown on leaks, changes in the latest round of betas for iOS 15, iPadOS 15, and macOS Monterey, and several stories...
duracell battery bitter coating

Apple Says Don't Buy AirTag Replacement Batteries With Bitter Coating

Wednesday July 28, 2021 11:08 am PDT by
Since AirTags were just released earlier this year and are expected to have a year-long battery life, it may be some time yet before AirTag users need a replacement battery, but when the time comes for a refresh, Apple is warning customers not to buy batteries with a bitter coating. AirTags use coin-shaped CR2032 batteries, which happen to be a size that's easy to swallow. Some battery...