For more than two years now I have been eagerly anticipating the day when I could finally write these words: the royalty crisis is over!
Webcasters, artists, and record labels have reached a resolution to the calamitous Internet radio royalty ruling of 2007. Pandora is finally on safe ground with a long-term agreement for survivable royalty rates. This ensures that Pandora will continue streaming music for many years to come!
Many people played a role in getting here. Pandora listeners provided support in extraordinary numbers in Congress, and a group of reasonable and constructive voices on the label and artist side of the table (groups like A2iM) helped forge a middle ground that, while perhaps not meeting all of our aspirations, still represents a thoughtful and reasoned outcome under the circumstances.
For this we are truly thankful and want to express our deepest gratitude to everyone involved.
The revised royalties are quite high – higher in fact than any other form of radio. As a consequence, we will have to make an adjustment that will affect about 10% of our users who are our heaviest listeners. Specifically, we are going to begin limiting listening to 40 hours per month on the free version of Pandora. In any given month, a listener who hits this limit can then opt for unlimited listening for the remainder of that month for just $0.99. In essence, we’re asking our heaviest users to put a dollar (well, almost a dollar) in the tip jar in any month in which they listen over 40 hours. We hope this is relatively painless and affordable–the same price as a single song download. (Alternatively, they can upgrade to “Pandora One”, our premium version which offers unlimited monthly listening in addition to its other benefits).
We hate the idea of limiting anyone’s listening, but we have no choice but to react the economic realities of the new rates.
There continues to be royalty-related activity in Washington DC. On the heels of the above resolution, there is a new effort in Congress to fix the broader issue of how musical artists are compensated across all forms of radio. The system as it stands today remains fundamentally unfair both to Internet radio services like Pandora, which pay higher royalties than other forms of radio, and to musical artists, who receive no compensation at all when their music is played on AM/FM radio. We, along with the artists whose music we play, strongly support the establishment of a level playing field, a truly fair system, as articulated in a new bill called the Performance Rights Act (H.R. 848).
It has been an extraordinary couple of years. Believe me, I never thought I’d be donning a suit and tie to walk the halls of Congress lobbying for a bill. Thanks to all of you for your continued support. It is incredibly exciting for everyone at Pandora to see the vision for the company truly beginning to take shape. We are all looking ahead with renewed vigor to the future.
Tim (Founder)


  1. roldan s
    February 03, 2010 at 7:12pm
    pandora its so so good
  2. Matt
    February 17, 2010 at 8:03am
    I have exceeded my 40 hour limit. So basically if I want to keep listening, I need to pay the .99. I am just wondering if there are any hidden fees and if I’m going to get charged extra on my card other than the .99? Anyone have problems with this? Just wondering to if my card number would be secure? All these internet transactions scare me.
  3. Ryan, Pandora Support
    February 17, 2010 at 5:42pm
    @Matt -- There are no hidden fees, and we will never charge you without your consent. There is no "auto-charging". All that will happen if you reach the 40-hour limit in the future is that your service will be put on hold until the end of the month (with the option to keep listening for $0.99 for the rest of the month).
  4. Christina
    February 19, 2010 at 11:33pm
    Does putting your music on pause, add the the limited hours?
  5. Jnana
    March 07, 2010 at 6:03pm
    If I pause Pandora, do the minutes/hours/days paused go towards my 40 hour limit? I ran out of time in 6 days!!
  6. Ryan, Pandora Support
    March 08, 2010 at 4:07pm
    @Christina, Jnana -- The clock is stopped when the player is paused, when the "are you still listening?" message is displayed, during audio ads, and during the gaps between songs. So basically, whenever music isn't playing, you are not accruing any time towards your 40 hours. Jnana, be sure you pause the player if you walk away from the computer and sign out when you're done, if you're using a shared computer. Otherwise, others could be listening on your account.
  7. Wesley Richardson
    January 22, 2011 at 5:14am
    Why has my Pandora stopped working.How can I contact Pandora?
  8. Cincinnati Insurance
    April 27, 2011 at 12:46am
    How do I connect my iPhone to my sound system in my car to utilize Pandora?
  9. Reagan
    August 25, 2011 at 5:55am
    Well Thank you pandora going to jango, good bye.

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