Pandora on Wednesday announced changes to its Pandora One streaming service rate plans. Set to take effect in May, new Pandora One subscribers will be billed at a rate of $4.99 per month. What’s more, there will be no option to pay in an annual subscription.

[Since 2009]…the costs of delivering this service have grown considerably. For example, the royalty rates Pandora pays to performers via SoundExchange for subscription listening have increased 53% in the last five years and will increase another 9% in 2015

Customers who are already subscribed to the $36 annual plan will be migrated to a monthly $3.99 plan with “discounted loyalty” rates. Indeed, this is still a $12 increase for the year, or $1 per month.

Pandora advises that the new plans only affect about 3.3 million of its 250 million registered user base.

Pandora

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