> ## Content Index > Fetch the complete content index at: https://www.hypebot.com/llms.txt > Use this file to discover other available public pages before exploring further. # Spotify, Pandora and Other Streaming Music Services Will Never Be Profitable, Says Study - URL: https://www.hypebot.com/spotify-pandora-and-other-streaming-music-services-will-never-be-profitable-says-study/ - Published: 2014-02-18T13:00:00.000Z - Updated: 2014-02-18T13:00:00.000Z - Description: Subscription music services like Spotify and Pandora are on track to double by 2017, according to a new study, but they will never turn a profit. The barrier to profitability. Continue reading [https://www.hypebot.com/hypebot/2014/02/spotify-pandora-and-other-streaming-music-services-will-never-be-p - Author: Bruce Houghton - Tags: Music Business, Music Tech, Startups & Funding, Streaming, #wp, #wp-post, #Import 2026-01-21 10:43 [![money](http://hypebot.typepad.com/.a/6a00d83451b36c69e201a73d7ad255970d-150wi "money")](http://hypebot.typepad.com/.a/6a00d83451b36c69e201a73d7ad255970d-popup?ref=hypebot.com) Subscription music services like Spotify and Pandora are on track to double by 2017, according to a new study, but they will never turn a profit. The barrier to profitability for steaming music, according to the analysis, is the 60-70% of revenue each service pays to labels, publishers and artists. [![image from www.computerworld.com](http://hypebot.typepad.com/.a/6a00d83451b36c69e201a73d7ad0d9970d-250wi "image from www.computerworld.com")](http://hypebot.typepad.com/.a/6a00d83451b36c69e201a73d7ad0d9970d-popup?ref=hypebot.com) Stakeholders could lower their rates, but that seems highly unlikely, according to analysts from [Generator Research](http://www.generatorresearch.com/report/digital-music-subscription-services-2013?ref=hypebot.com) which produced the report. So to survive, [says](http://www.computerworld.com/s/article/9246365/Music%5Findustry%5Fsucks%5Flife%5Ffrom%5Fsubscription%5Fservices?ref=hypebot.com) the study, music strreamers likely need to be sold to a deep pocketed partner and "for a (publicly) listed company like Pandora this would mean that the company would need to be taken off the public market." Brights spots include bundling with other services (like AT&T and Beats) and selling value added services to consumers. "Services like iTunes Match and Google and Amazon are already heading in this direction," the research stated. *Source – [Digital Music Subscription Services](http://www.generatorresearch.com/report/digital-music-subscription-services-2013?ref=hypebot.com): 2013 via [Computerworld](http://www.computerworld.com/s/article/9246365/Music%5Findustry%5Fsucks%5Flife%5Ffrom%5Fsubscription%5Fservices?ref=hypebot.com)* **MORE: [Ad Confirms Spotify Planning For IPO](https://www.hypebot.com/ad-confirms-spotify-headed-toward-ipo/)** Related articles [![](http://i.zemanta.com/207272034_80_80.jpg)](https://www.hypebot.com/spotify-adds-follow-buttons-but-will-artists-and-labels-use-them/)[Spotify Adds Follow Buttons, But Will Artists and Labels Use Them?](https://www.hypebot.com/spotify-adds-follow-buttons-but-will-artists-and-labels-use-them/) [![](http://i.zemanta.com/113093476_80_80.jpg)](https://www.hypebot.com/itunes-dominates-music-sales-while-pandoras-footprint-soars-study/)[iTunes Dominates Music Sales, While Pandora's Footprint Soars \[STUDY\]](https://www.hypebot.com/itunes-dominates-music-sales-while-pandoras-footprint-soars-study/) [![](http://i.zemanta.com/143218244_80_80.jpg)](https://www.hypebot.com/how-does-spotify-compare-to-pandora-infographic/)[How Does Spotify Compare To Pandora? \[INFOGRAPHIC\]](https://www.hypebot.com/how-does-spotify-compare-to-pandora-infographic/) [![](http://i.zemanta.com/249137124_80_80.jpg)](https://www.hypebot.com/ad-confirms-spotify-headed-toward-ipo/)[Ad Confirms Spotify Planning For IPO](https://www.hypebot.com/ad-confirms-spotify-headed-toward-ipo/) [![](http://i.zemanta.com/167452920_80_80.jpg)](https://www.hypebot.com/stock-market-remains-unfriendly-to-pandora/)[Stock Market Remains Unfriendly To Pandora](https://www.hypebot.com/stock-market-remains-unfriendly-to-pandora/) [![](http://i.zemanta.com/154951533_80_80.jpg)](https://www.hypebot.com/spotify-to-launch-first-ever-ad-campaign-on-nbcs-the-voice-tonight-video/)[Spotify To Launch First Ever Ad Campaign On NBC's The Voice Tonight \[VIDEO\]](https://www.hypebot.com/spotify-to-launch-first-ever-ad-campaign-on-nbcs-the-voice-tonight-video/) [![](http://i.zemanta.com/128196273_80_80.jpg)](https://www.hypebot.com/clearing-up-spotify-payment-confusion/)[On Grizzly Bear And The Spotify Payment Confusion](https://www.hypebot.com/clearing-up-spotify-payment-confusion/) [![](http://i.zemanta.com/240591337_80_80.jpg)](https://www.hypebot.com/is-pandora-prepared-for-the-launch-of-beats-music/)[Is Pandora Prepared For The Launch Of Beats Music?](https://www.hypebot.com/is-pandora-prepared-for-the-launch-of-beats-music/) [![](http://i.zemanta.com/211068449_80_80.jpg)](https://www.hypebot.com/david-byrne-takes-a-sharp-yet-despairing-look-at-spotify-streaming-music-and-musicians/)[David Byrne Takes A Sharp Yet Despairing Look At Spotify, Streaming Music and Musicians](https://www.hypebot.com/david-byrne-takes-a-sharp-yet-despairing-look-at-spotify-streaming-music-and-musicians/) [![](http://i.zemanta.com/147505244_80_80.jpg)](https://www.hypebot.com/google-in-talks-to-take-on-spotify-rhapsody/)[Google In Talks To Take On Spotify, Rhapsody](https://www.hypebot.com/google-in-talks-to-take-on-spotify-rhapsody/)