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FBN’s Shibani Joshi weighs in on Pandora’s policy change with regard to free mobile music.
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And we can even get free streaming music is pretty remarkable on you can expect and as -- years in the industry evolves that's going to change in pandora is getting hip with all of that making small incremental changes.
To try and bring in some incremental revenue -- two ways of looking at at the stock price the stock price down today.
But actually reacting favorably to the news -- news leaked on Tuesday night yesterday it was -- today trading a little bit lower here.
Pandora shareholders.
Are looking for important measures to deal these import measures to deal with rising costs acquire new music it costs.
Actually the costs of acquiring -- music take up to 60% of revenues over the last over the last year.
So this is a good news or win win for pandora shareholders that tender users.
Are scratching their heads of worried about what's going to happen here Tim Westergren much as a founder and interviewed and it's a great music lover and a great visionary in this industry saying in a blog post at pandora's her tracks and royalty rates have increased more than 25%.
Over the last three years and are scheduled to increase an additional 6% of the -- Next two years.
But here's the catch here.
The limit is forty hours per week and that is as small sliver of the affected user base in fact they think it only two point six million users shall be impacted.
The -- is 65 million users overall.
A steeple Nicholas very happy about this news -- reiterating a -- pandora shares saying mobile listening cap this mobile listening cap could generate significant cost savings.
And has to be good for -- and so overall a win win affecting a very small percentage of the population and --
