Pandora Caps Free Mobile Listening to Curb Royalty Costs

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Pandora Media Inc., the Internet radio service, is capping free mobile listening at 40 hours a month in the absence of sufficient advertising sales to pay for rising music costs.

The change, which begins in March, applies to U.S. users and will affect about 4 percent of the 65.6 million listeners, Chief Executive Officer Joe Kennedy said in an interview. Fans can pay 99 cents to continue listening on mobile devices, the Oakland, California-based company said yesterday on its website.