Pandora Plans To Lift Its 40-Hour Free Listening Cap On Sept. 1

Posted: August 22, 2013 in Uncategorized


During this afternoon’s earnings call, Pandora executives said that they would lift for the 40-hour monthly cap on free mobile listening that was announced back in February.

This is actually the second time Pandora has instituted a free cap and then lifted it again — it last lifted the cap in September 2011.

CFO Mike Herring said the decision was based on two factors. First, he described the cap as a “blunt tool” for limiting usage and costs, and in the time since, the company has developed more “surgical techniques” (such as skip limits), that control costs without affecting the listener experience as obviously. He also said that due to improvements the business, particularly in the advertising business, Pandora can now “monetize those hours from 41 onward at a much higher rate.”

Herring also noted that when the mobile cap was reinstituted, usage dropped 10 percent. He said lifting the…

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