Today Pandora announced that it will be removing its 40-hour-per-month listening cap come September 1st. Now free users will be able to listen for as long as they like and ads will play every 30 minutes.
The decision to remove the cap is an obvious reaction to the impending launch of Apple’s iTunes Radio, a radio streaming service that will be shipped to the public in iOS 7 after September 10th. Since more than two thirds of Pandora’s revenue comes from its mobile apps, iTunes Radio is very much a threat.