Pandora raises fee for ad-free music service by $1 a month

The Pandora logo hangs over the New York Stock Exchange on June 15, 2011 in New York City. Credit: Getty Images
The Pandora logo hangs over the New York Stock Exchange on June 15, 2011 in New York City. Credit: Getty Images

Pandora Media Inc. will increase fees for its ad-free service by $1 a month to almost $5 a month in May, a move to cover the rising cost of licensing tunes that may annoy some longtime fans of the popular music-streaming service.

The company, which streams music from virtual radio stations to mobile devices such as Apple Inc.’s iPhone or Google Android smartphones, said in a Tuesday blogpost that royalties paid to artists had risen 53 percent over the past five years and will rise another 9 percent in 2015.

The increase of $1 to $4.99 a month takes effect for new subscribers in May. Existing monthly subscribers will not be forced to accept the higher charges for now, it said without elaborating.

Annual subscriptions will be discontinued however. Yearly subscribers paying $36 a year currently will move to a monthly, “loyalty” $3.99 plan once their memberships expire.

Pandora said the fee hikes should affect an estimated 3.3 million listeners, out of 250 million registered users, the bulk of whom tune in to the free, ad-supported service.

“The costs of delivering this service have grown considerably,” Pandora said in a blogpost on Tuesday. “We hope that you understand why we have taken these steps. Our goal is to continue to be your go-to internet radio destination.”

Pandora is already one of the world’s most popular streaming music services though it has plenty of competitors, including Spotify and Apple Inc’s iTunesRadio. It’s also aggressively investing in local salesforces to sell ad spots and on expanding its four-year-old service.

The company said that active listeners in January fell to 73.4 million from 76.2 million in December, due to normal seasonality.

However, year-over-year active users were up 12 percent.

 



News
Entertainment
Sports
Lifestyle
International

Dinosaurs could have survived asteroid strike

It turns out there is a good and a bad time for the planet to be hit by a meteor, and dinosaurs were just unlucky.…

National

OkCupid admits to Facebook-style experimenting on customers

By Sarah McBrideSAN FRANCISCO (Reuters) - OkCupid, a top U.S. matchmaking website, intentionally mismatched users to test its technology, the IAC/InterActive Corp service said on…

Local

MTA fares still increasing 4 percent in newly…

The agency said the 4 percent increases, previously announced in December, will remain steady even as the MTA deals with increasing labor costs.

Local

De Blasio, Bratton defend city's efforts after Eric…

Mayor Bill de Blasio justified the city's response to the death of Eric Garner, a Staten Island man who died while in police custody earlier this month.

Movies

Interview: Brendan Gleeson on the way 'Calvary' depicts…

Brendan Gleeson talks about how his new film "Calvary" began over drinks and how his character here is the opposite of the lead in "The Guard."

Movies

'Get on Up' producer Mick Jagger on the…

Mick Jagger, a producer on the James Brown biopic "Get on Up," talks about the time had to tell the singer some bad news and his favorite JB record.

Television

'Glee' star Lea Michele to appear on 'Sons…

"Glee" star Lea Michele has been confirmed as a guest star in the final season of "Sons of Anarchy."

Television

TV watch list, Monday, July 28: 'The Bachelorette'…

See Andi Dorfman make her big choice on tonight's 'Bachelorette' finale.

NFL

Larry Donnell has inside track in Giants tight…

Little-known Larry Donnell of Grambling State currently has the inside track, as the second-year player has received the bulk of the first-team reps.

NFL

Computer to Jets: Start Michael Vick over Geno…

Jets general manager John Idzik says the choice of who starts between second-year quarterback Geno Smith and veteran Michael Vick will be a “Jets decision.”

MLB

Yankees looking to trade for Josh Willingham: Report

CBS Sports’ Jon Heyman reported Sunday the Yankees are interested in Twins outfielder Josh Willingham.

MLB

Joe Torre: I'm in Hall of Fame because…

Joe Torre spent 18 years putting together a near Hall of Fame career as a player. But it was the 12 years he spent as…

Travel

Glasgow: Hey, hey, the gangs aren't here

This European city has done a good job getting rid of its more violent residents and revitalizing with artists.

Education

Babson College tops list of best colleges for…

Money magazine has just released its inaugural list of "The Best Colleges for Your Money" -- and the answers have surprised many. Babson College, which…

Education

NYC teens learn how to develop apps during…

Through a program sponsored by CampInteractive, the high schoolers designed their own community-focused apps.

Tech

The Ministry of Silly Walks app is both…

Monty Python have dug into their back catalogue for cash-ins once more, but with the Ministry of Silly Walks app, they've made something that's fun too.