Pandora Hears Footsteps Behind Them – Removes 40 Hour Free Mobile Listening Cap

Pandora Hears Footsteps Behind Them – Removes 40 Hour Free Mobile Listening Cap

Pandora must be hearing the footsteps of Apple’s impending iTunes Radio service coming up swiftly behind them, as during today’s earnings call, Pandora CFO Mike Herring said the company will again allow unlimited listening via mobile devices, eliminating its 40-hour monthly cap that was implemented in February.



While desktop Pandora listeners were able to listen to unlimited music, mobile users that exceeded 40 hours had to subscribe to the Pandora One service at $36/year or pay a small fee.

Herring noted that increased advertising income and tighter control over other cost saving techniques have allowed Pandora to lift the cap.

September should see the debut of Apple’s iTunes Radio service alongside iOS 7. The service will be ad-supported for all subscribers, though it will run ad-free for iTunes Match subscribers.

Of course, Pandora CEO Joe Kennedy says his company isn’t hearing foot steps, telling AllThingsD:

“We’ve now been around for eight years. We’ve seen competitors large and small enter the market and, in some cases, exit the market. I’ve never seen an analysis that identifies an effect from any competitor … we don’t see the picture changing.”

Perhaps Mr. Kennedy should speak with BlackBerry executives, who made similar comments when the iPhone was first released.

Pandora reported revenue of $162 million, up 58% year over year.

Pandora’s listening cap will be lifted September 1st, nine days before Apple’s expected public unveiling of iTunes Radio and iOS 7.