Pandora Removes 40-Hour-Per-Month Limit
With cost of content down and revenue up, Pandora CFO Mike Herring said the company is lifting the 40-hour-per-month listening limit it instituted six months ago. He says the company knows more about its users and plans to use that insight to incorporate more "surgical levers," like limiting song skipping, to help keep content costs down.
Before the 40-hour limit, users could listen indefinitely, driving up costs. The 40-hour limit helped cap runaway users and also increased subscriptions which grew from 1.8 million to 3 million with the cap in place. Herring said he doesn't expect to see a big spike in hours when the 40-hour limit is removed in September.
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