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Pandora Media to cap free mobile listening as costs surge
Feb 27 (Reuters) - U.S. online streaming music company Pandora Media Inc said it would cap free mobile listening at 40 hours per month as it tries to overcome rising royalty costs.
Pandora, which relies mainly on advertising for revenue, is struggling to grow amid fierce competition from the likes of Sirius XM Radio Inc .
Pandora's per-track royalty rates have increased more than 25 percent over the last 3 years, including 9 percent in 2013 alone and are set to increase an additional 16 percent over the next two years, co-founder Tim Westergren wrote in a blog posted on the company's website.