Pandora Media, the Internet radio service, is capping free mobile listening at 40 hours a month in the absence of sufficient advertising sales to pay for rapidly rising music costs. The change, which begins in March, 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, Calif.-based company said on its website.
Shares of Pandora were up 4.2 percent, to $12.74, yesterday.