Pandora will remove the 40-hour-per-month limit on free mobile listening effective Sept. 1.
The Internet audio service did this once before, the company imposed the limit again this March to manage its rapidly increasing music royalty costs.
While in place, the limit affected fewer than four percent of total monthly active listeners, according to Pandora, which says it can lift the limit thanks to rapid progress on its mobile advertising. According to eMarketer, Pandora is now the third largest generator of mobile ad revenue, behind only Google and Facebook, stated the Internet audio service.
Reporting its second-quarter earnings, Pandora says its ad revenue totaled $129 million in the latest quarter, a 44% increase compared to last year. The company says its active users reached 71.2 million, growing 30% year-over-year.