Pandora has taken a giant step ahead of the Apple's iTunes Radio launch. It will lift the 40-hour per month free mobile listening limit on 1st September, 2013.
It’s been twice in a row that Pandora has imposed and then lifted the 40 hour free listening limit. There are two reasons behind this decisive action. Firstly, while the cap was in place, new more sophisticated tools have been created to deal with the costs. Then thanks to betterment in the advertising department, a level of monetization that exceeds the previous watermark is possible. Reinstituting the cap caused a 10% decrease in usability. However, removing it won’t necessarily boost subscriptions. The rival of Pandora, Apple's iTunes Radio is about to undergo a launch ceremony. It will offer some stiff competition to Pandora.
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Pandora founder, Tim Westergren, said in press release, "We're pleased to once again maximize free listening for everyone on Pandora. The more than 70 million listeners that tune in every month will now have more time to hear the music they love, and thousands of working artists will reach more fans."
Pandora is predicted to keep raking in some hefty profits all year long. Some of the surgical techniques devised by the company allowed it to remove its 40 hour free listening limit. Skyrocketing RPM and falling costs are two other results of these actions. As a fairly large radio station that is heard throughout the major cities of the United States, Pandora’s future is pretty secure. Yet Apple’s iTunes Radio will be dogging its steps all the way. Apple will introduce iTunes Radio to gadgets that utilize iOS 7, Macs, PCs and Apple TVs. Meanwhile, the plan undertaken by Pandora is diametrically opposed to its previous stance. We will have to see how it fares in the future.