If you have been following the news, you know that a ruling last week regarding how much Pandora should pay ASCAP went in the company’s favor. It was ruled that the Internet radio service would pay the high-end of the range it felt the rate should fall within: 1.85-percent to be exact. And now that it is settled, Pandora has announced the bad news for new subscribers, which is an increase in rates.
The company said that over the next few months some changes will be made to the Pandora One subscription pricing. If you aren’t familiar with it, this is how frequent users can avoid having to listen to ads and confirm they are still listening. Up to this point Pandora One has been priced at $3.99, with an annual subscription being offered at $36. This rate has held steady, despite increases in costs for the company over the years. Well, it is time for that to change.
If you have a current subscription, you will be able to keep it at $3.99 per month, but if you subscribe after the change, you will be charged $4.99 starting in May. That’s not huge money and honestly seems fair to me. Existing subscribers who stay active will “migrate to a discounted loyalty price of $3.99” monthly when their renewal period arrives. The annual rate option will be no more.