Pandora Limits Mobile Monthly Usage to 40 Hours

By Ashley Caputo March 04, 2013

Many businesses that operate from a website have been trying to figure out a way to continue profiting in the mobile world. As users begin to use mobile devices more and more often, even big companies like Facebook have had some difficulty with the transition.

The most recent company to make a transition to preserve its revenue is Pandora, which will be imposing a 40-hourly monthly limit for listeners to its free service on mobile devices.

According to the blog post written by Tim Westergren, the founder of Pandora, Pandora’s per-track royalty rates have increased more than 25 percent over the last three years, including 9 percent in 2013 alone, and are predicted to increase an additional 16 percent over the next two years. The new 40-hour per month mobile listening limit will help Pandora manage the rising costs with the most minimal effect on the user.

Although Westergren said this will affect less than 4 percent of Pandora’s’ monthly active listeners, it brings attention to pressing issue mobility usage has on a company. 


Image via VentureBeat

As mobility usage begins to surge, companies like Pandora and Facebook have been trying to create marketing strategies in the wake of the telematics revolution. Facebook’s new calling feature has discovered a tactic that will benefit it and mobile operators.

Facebook’s update to its standalone iOS and Android Messenger app allows users to send voice messages that last up to one minute (for now). Like all VoIP services, this calling feature provides users with a service that is cheaper than the traditional phone service and offers easier accessibility options, as it can be used directly from a mobile device.

Despite innovations that have been produced by the mobility trend, the speed at which technology continues to develop and change can be difficult for companies to keep up with and efficiently manage their sales. Consumers are going to continue seeing changes, such as the ones Pandora and Facebook have introduced, in order for companies to survive.




Edited by Rachel Ramsey

TechZone360 Web Editor

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