Pandora, the popular music streaming service, will no longer have unlimited free streaming music services available through their mobile app. This is because royalty rates have increased for streaming music. The royalty rates are expected to increase 16% over the next few years.
The 40 hour ad-supported model is going into effect today and will affect around 4% of Pandora users. This is based on the average Pandora spending only 20 hours of free streaming per month across mobile and desktops.
Pandora will let customers make in-app purchases to continue listening to Pandora for $0.99 to finish off the month after the 40 hour usage is reached. These changes will not affect Pandora One users that pay a monthly fee for mobile access. Pandora sent out an e-mail about the changes.