Pandora Increases Rates For Pandora One Subscription Services
"We’ve been fortunate to be able to offer Pandora One at an affordable price since its debut in 2009 at $36 per year and later with the introduction of a monthly subscription for only $3.99 per month. Over this same period, the costs of delivering this service have grown considerably," Pandora explained in a blog post. "For example, the royalty rates Pandora pays to performers via SoundExchange for subscription listening have increased 53 percent in the last five years and will increase another 9 percent in 2015."
Existing Pandora One subscribers needn't worry about the price hike, as they'll continue to pay $3.99 per month. The same goes for anyone who subscribers before May, so if you're on the fence, you have a little more than a month to make a decision before it's too late.
This isn't a nefarious move on Pandora's part. As the streaming provider points out, the costs of delivering millions of songs to a plethora of devices is only going up as artists and record labels demand a larger slice of the pie. In addition, Pandora said the price increase will only affect a small percentage of its listeners. Out of 250 million registered users, just 3.3 million are paying subscribers, all of which can continue to pay the current rate.