The newly implemented CRB rates took their toll on Pandora. In 2016, content costs represented 53% of total revenue up from 52% in 2015. Total content costs rose by almost $124 million dollars in 2016 as a result of the new CRB rates enacted in January. Also contributing to that increase were direct deals Pandora signed with labels back in September and growth in listener hours. Content costs in Q4 of 2016 represented 54% of revenue.
