Pandora currently pays 14 cents per 100 spins on its free service and 25 cents per 100 spins on the paid service. Next year those payments will increase to 17 cents per 100 plays on the free side and decrease to 22 cents per 100 listens on their Pandora One ($5 per month) subscription model. According to Pandora executives this will result in about a 15 percent increase. Pandora CFO Mike Herring said on a conference call Wednesday night that he expects rates to increase 2 percent from 2017 – 2020. Herring said these new rates are manageable and the company can maintain growth levels of 40-60 percent. Pandora was asking the rate be reduced to 11 cents per 100 free spins. SoundExchange, which represents the music industry, was asking the rates be raised to between 25 and 30 cents. Herring said the rates came in close where they were expecting them to come in.