Internet radio lovers looking for a commercial-free experience will soon have to pay a slight bit more if Pandora is their app of choice. The company has announced a price hike for its Pandora One subscription service.
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Pandora to up subscription fee for new users

Internet radio lovers looking for a commercial-free experience will soon have to pay a slight bit more if Pandora is their app of choice. Today the company has announced that starting in May its Pandora One subscription service will see an increase in price for the first time since the music streaming platform launched in 2009.

pandora-one

Current subscribers have bought into one of two Pandora One options: a $3.99 per month fee or a one-time annual fee of $36. In May, the per month fee will jump to $4.99. Pandora will do away with its annual subscription option.

The good news is that current active subscribers will not see a change in their monthly fee. Annual subscribers will be moved to a monthly “loyalty” plan; they too will also retain the $3.99 pricing. The new pricing will apply to subscribers signing up after today, but changes won’t take effect for two more months.

Pandora points to rising licensing and royalty rates, citing a 53 percent increase in the last five years and an expected 9 percent increase in dues by 2015. With such a huge fluctuation, it’s actually surprising pricing changes did not take place sooner.

Pandora currently hosts 250 million registered users, 3.3 million of which oars paid Pandora One subscribers. Recent rankings released by Edison Research show the service as the most popular in the US, used by 31 percent of listeners. Pandora is followed in popularity by iHeartRadio, iTunes Radio, and Spotify.

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