In an effort to balance growing royalty costs, Pandora announced Wednesday that it will be eliminating unlimited ad-supported music streaming on the service via mobile.
Pandora listeners in the US will now be limited to 40 hours of free ad-supported streaming on their mobile devices each calendar month, after which they’ll have to pay a fee to keep listening $.99 in-app purchase.
Kennedy says that the average user on Pandora only spends 20 hours on the service across all platforms. He says that Wednesday’s announcement is likely to only effect 4% of Pandora’s monthly active listeners.
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