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Pandora to Raise Fees In May

Mar 19, 2014, 7:18 AM by Eric M. Zeman

Pandora said it will make several changes to its fee structure beginning in May. Pandora One monthly customers who already pay $3.99 for ad-free listening can continue to listen at the same price. However, new monthly subscribers will have to pay $4.99 per month, an increase of $1 over today's rates. Customers who chose Pandora's $36 annual fee will be moved to a "discounted loyalty price" of $3.99 per month, which represents a price increase of $12 for the year, or $1 per month. Moving forward, Pandora will no longer offer the annual subscription option. Pandora says these changes are necessary to offset increased costs, such as licensing fees. It claims the changes will affect only 3.3 million of its 250 million registered users. All customers can listen to music with ads for free. Pandora is an internet-based radio station provider that has apps for Android, BlackBerry, iOS, and Windows Phone devices.

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Pandemic187

Mar 19, 2014, 9:54 PM
edited

Another increase?

Less than 2 years ago, the price was $36/year, so $3 a month. Then it was changed to $3.99 about a year ago, and now it'll be $4.99? That's a 150% increase in less than 2 years. I understand that royalties on music are quite high, but the main reason I've paid for Pandora is because the cost is low and the only benefit (for me) is no ads. Once I lose my $3.99 rate, I will seriously consider using the ad-supported version, or maybe just switching to Play Music.

Also, from the linked article: "For example, the royalty rates Pandora pays to performers via SoundExchange for subscription listening have increased 53% in the last five years and will increase another 9% in 2015." So...this warrants a 150% cost in the subscription price how, exact...
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T Bone

Given how cheap Pandora still is compared to the competition, and the fact that they still aren't profitable, I don't think that they are charging enough.

Competitors like Spotify charge $9.99 a month or more.

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Slammer

If you're a Galaxy owner, I have found solitude in the free app. Currently, it is ad free and is powered by slacker. Interface is really cool and I have found myself using it more than Pandora. I really do love Pandora but I am equally in favor of the...
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The Victor

it says in the article if your paying the $3.99 you dont lose it it stays the same

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