Andre Yoskowitz
22 Aug 2013 21:20
Speaking during their quarterly earnings call, Pandora executives have stated they will end the 40-hour monthly cap imposed on free mobile listeners since February.
Pandora first initiated a cap in September 2011, and then lifted it soon after.
CFO Mike Herring says the cap was a "blunt tool" for limiting costs and halting abusive users, but there have been more "surgical techniques" implemented since, including skip limits that help control costs but do not affect the customer experience as much.
Additionally, he says the business has improved to the point where the company can "monetize those hours from 41 onward at a much higher rate."
Herring noted that when the cap was put in place, usage dropped 10 percent. Despite the drop, revenue jumped 58 percent year-over-year, and the company says they will be profitable for this year.