Earlier this year, Pandora capped the amount of time its users could stream music via its mobile app at 40 hours per month. Now the company has announced it is ending this cap, as of September 1. Pandora CFO Michael Herring announced the change during a conference call on Thursday to discuss the company's latest quarterly fiscal report, which was released late yesterday.
According to CNet, Herring said the company doesn't expect a major jump in listening following the change, as skipping limits and other measures will manage listenership better than the cap, which he called a "blunt tool." Herring added that Pandora estimated that listening fell by 10 percent after the cap was imposed, but the company has figured out how to make more money off the impending listening growth.
In Pandora's report on its Q2 for the fiscal year 2014, its revenue grew 55 percent to $157.4 million, with ad revenue up 44 percent to $128.5 million. However, the service also took a net loss of $7.8 million in the three month period.