Everyone has bills.
Everyone.
Internet Music Streaming giant Pandora, has recently announced a 40 hour per month listening cap for all mobile listeners. This comes after 3 years of a continuous increase in the amount of royalties they must pay per track.
Pandora founder, Tim Westergren, released a short, but telling explanation through the company's blog:
...limiting listening is a very unusual thing to do, and very contrary to our mission so we wanted to share a quick explanation. PANDORA's per-track royalty rates have increased more than 25% over the last 3 years, including 9% in 2013 alone and are scheduled to increase an additional 16% over the next two years. After a close look at our overall listening, a 40-hour-per-month mobile listening limit allows us to manage these escalating costs with minimal listener disruption.
My guess is, this limit will be used as leverage in future financial negotiations with artists. For those of you with a pouty face right now, cheer up. Odds are, you don't actually listen to anywhere near 40 hours of music per month. If you do, you're really getting over and should them a cut a check.
They need it.
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