Pandora Lifting Listening Cap Ahead of iTunes Radio Launch
August 23, 2013 11:11 AM
comment(s) - last by
The cap will be lifted September 1
said that it will lift its monthly cap on free mobile listening (again), which is coincidentally being announced ahead of
Apple's iTunes Radio
An earnings call with Pandora yesterday revealed that the 40-hour monthly cap would be lifted on September 1 for two reasons: other tools such as skip limits are being used to cut usage and costs instead, and more money coming in through advertising is helping Pandora afford those extra hours beyond 40.
Pandora CFO Mike Herring said that usage fell 10 percent when the cap was implemented, but that he doesn't expect the number of subscribers or hours of listening time to dramatically increase with the lift.
This isn't the first time Pandora has used a monthly cap on its service, then lifted it. It did this back in 2011 as well.
Pandora didn't cite Apple's iTunes Radio as a reason for the cap lift, but since the new radio service is about to launch with no caps at all, it's likely in the back of Pandora's mind from a competition standpoint.
ITunes Radio is an Internet radio service by Apple that was announced at the Worldwide Developer's Conference (WWDC) in June of this year. It's expected to be released alongside iOS 7 this fall, and will be available for iOS devices, Apple TV and the iTunes app on both Mac and Windows computers.
Back in June,
The Wall Street Journal
reported that Apple is willing to
pay record labels more in royalties
for the iTunes Radio service that Pandora does. The report said Apple will pay a label 0.13 cents each time a song is played along with 15 percent of net advertising revenue for the first year. In the second year, that 0.13 will bump up to 0.14 cents per song played and 19 percent of ad revenue. Pandora, on the other hand, currently pays labels 0.12 cents per song played.
This could give Apple the upper hand at some point, considering record labels will likely go where the money is. But the fact that Pandora is available on more mobile devices than just those with iOS is still a big win.
This article is over a month old, voting and posting comments is disabled
8/24/2013 3:56:52 PM
just before I looked at the paycheck of $6160, I accept that my neighbours mother woz realie earning money parttime from their computer.. there moms best frend had bean doing this 4 only nine months and just repaid the debts on their house and purchased a great Ford Mustang. this is where I went, www.work25.Com
"We don't know how to make a $500 computer that's not a piece of junk." -- Apple CEO Steve Jobs
Apple Discusses Royalties with Record Labels for iTunes Radio, Pays More Than Pandora
June 27, 2013, 10:40 AM
Twitter Senior VP: "Diversity is Important, But We Can’t Lower the Bar"
November 9, 2015, 9:59 AM
CNN Resorts to Internet Censorship to Promote Clinton Over Senator Sanders
October 15, 2015, 2:47 PM
Breaking Bad: How to Crash Google's Chrome Browser With Just 8 Characters
September 23, 2015, 11:08 AM
Quick Note: Amazon UK Offers £10 Back on Any Order £50 or Over
August 3, 2015, 12:05 PM
Editorial: Reddit Allows Itself to be Hijacked as a Hate Platform For Racist Bigots
July 21, 2015, 6:32 PM
Mozilla and Facebook to Adobe: It's Time to Kill Flash
July 20, 2015, 6:30 PM
Latest Blog Posts
Sceptre Airs 27", 120 Hz. 1080p Monitor/HDTV w/ 5 ms Response Time for $220
Dec 3, 2014, 10:32 PM
Costco Gives Employees Thanksgiving Off; Wal-Mart Leads "Black Thursday" Charge
Oct 29, 2014, 9:57 PM
"Bear Selfies" Fad Could Turn Deadly, Warn Nevada Wildlife Officials
Oct 28, 2014, 12:00 PM
The Surface Mini That Was Never Released Gets "Hands On" Treatment
Sep 26, 2014, 8:22 AM
ISIS Imposes Ban on Teaching Evolution in Iraq
Sep 17, 2014, 5:22 PM
More Blog Posts
Copyright 2016 DailyTech LLC. -
Terms, Conditions & Privacy Information