Pandora (P) Looks to Cap Mobile Device 'Super Users'...Unless They Pay Up
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Millions of people enjoy the streaming radio service Pandora (NYSE: P) provides, particularly on their mobile devices. Most listen to about 20 hours per month, but there are a few which exceed that limit.
However, Pandora is planning to cap the amount of streaming available to mobile devices starting in March. The company will limit mobile listening to about 40 hours per month, the NY Post reported Thursday, citing a company blog post.
Pandora is said to be making the move due to the absence of ad sales to compensate for rising costs of music content. The company offered-up this explanation: Pandora's per-track royalty rates have increased more than 25 percent over the last 3 years, including 9 percent in 2013 alone and are scheduled to increase an additional 16 percent over the next two years. 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.
About four percent of the 65.6 million Pandora users will be affected.
To continue listening, users will be able to pay a small fee of 99 cents per month.
Into the opening bell, Pandora is indicated lower.
However, Pandora is planning to cap the amount of streaming available to mobile devices starting in March. The company will limit mobile listening to about 40 hours per month, the NY Post reported Thursday, citing a company blog post.
Pandora is said to be making the move due to the absence of ad sales to compensate for rising costs of music content. The company offered-up this explanation: Pandora's per-track royalty rates have increased more than 25 percent over the last 3 years, including 9 percent in 2013 alone and are scheduled to increase an additional 16 percent over the next two years. 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.
About four percent of the 65.6 million Pandora users will be affected.
To continue listening, users will be able to pay a small fee of 99 cents per month.
Into the opening bell, Pandora is indicated lower.
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