The Wall Street Journal reports Greylock Partners led a new round of funding resulting in millions for the service. Although neither Greylock or Pandora is commenting publicly on it, media reports indicate the amount to be in the neighborhood of $35 million.

The funding comes one week after Internet radio stations found common ground with online royalties organization SoundExchange. For the last few years online radio outlets have complained that royalty fees established in 2007 calling for payments based on individual plays would drive them to the poor house.

The new fee structure calls for online stations earning more than $1.25 million per year to pay either 25 percent of gross income or .093 cents per spin, depending on which adds up to a bigger bill.

Because of all the dickering between SoundExchange and the online radio biz, investors have shied away from the industry over the past couple of years, but now believe the new royalty structure will prevent online streamers from having to pay fees that almost equaled their yearly income stream.

“I’ve been concerned about the space in general, but as I looked under the covers I realized it’s a great business,” Greylock Partner David SZE told the Journal. “Pandora’s brand is strong and they’re getting to scale.”

Along with getting all that loot, it looks as if Pandora is going to start charging the biggest fans of its free service. Users who listen to more than 40 hours a month will be charged 99 cents to keep the music playing for the rest of the month.

“We realized that with this resolution that when you’re advertising-supported it’s harder to monetize a heavy listener,” Pandora founder and chief strategy officer Tim Westergren said. “It’s easy to monetize someone who listens for one hour, but harder for someone who listens for two hours or more. Advertisers pay for reach, not depth. This is just asking for a dollar in the tip jar.”

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