Pandora Puts 40-Hr Monthly Limit On Mobile

The online radio service is capping its mobile listerners at 40 hours of free music per month to help it manage the rising cost of royalty fees. Pandora says the cap will affect less than 4% of its listeners.

Pandora this week placed a limit of 40 hours of free music per month on its mobile users.

The online radio company said the limit will help it manage the cost of royalty fees that it says have risen 25% since 2010 and are expected to increase another 16% by 2015.

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"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," Tim Westergren, Pandora's co-founder and chief strategy officer, wrote in a blog post.

Westergren said that the move would affect less than 4% of the company's total monthly active users, add that the average listener spends about 20 hours per month using the service across all devices.

Pandora previously placed a 40-hour limit on desktop users, but lifted the restriction in 2011.

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