Pandora Increases Monthly Subscription Fee, Kills Off Annual Subscription Option
March 19, 2014 1:50 PM
The price change will take effect in May
Some Pandora subscribers will see their plans or monthly rates change as the music-streaming company compensates for higher costs.
, new Pandora One users will see a price increase from $3.99 to $4.99 per month come May 2014. Existing customers, however, will stay locked into the $3.99 per month price for now.
In other words, if you've been on the fence about subscribing to Pandora One, you'll want to do so before May.
Pandora also said that it would axe its annual subscription option and instead replace it with the monthly $3.99 fee. It seems that is going into effect immediately for new customers, but those with an existing annual Pandora account will be notified of the change when their renewal time comes around.
Pandora cited growing costs for content delivery as the reason for the rates and plan changes.
"We’ve been fortunate to be able to offer Pandora One at an affordable price since its debut in 2009 at $36 per year and later with the introduction of a monthly subscription for only $3.99 per month," said Pandora. "Over this same period, the costs of delivering this service have grown considerably. For example, the royalty rates Pandora pays to performers via SoundExchange for subscription listening have increased 53% in the last five years and will increase another 9% in 2015."
Pandora isn't the only Web service feeling the pressure with content costs. Amazon recently announced that it will
up annual Prime costs
from $79 to $99 a year when current customer's renewal periods are up.
In an effort to keep customers interested, Pandora
lifted its monthly cap
on free mobile listening back in September 2013 -- just ahead of the iTunes Radio Launch.
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