Pandora Royalty Costs Are Growing Faster Than Revenue [CHART] - hypebot

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Maurice DeNoble

Pandora's biggest problem isn't the rising cost of royalties, their biggest problem is they have a bad business model. The Pandora business model is that the company cannot become sustainably profitable due to the fact that the more music its users listen to, the more it must pay out in royalties. The ad based business model is a failure, and after 9 years it is about time to acknowledge that failure and create a better business model; reducing artist royalties as they have suggested repeatedly is not the answer.

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