Next Big Sound (a/o May 16th):
Re: My Song Was Played 3.1 Million Times on Pandora. My Check Was $39...
You seem very knowledgeable of the radio industry, for whatever reason.
Everyone knows I am an artist, but what are you in all this? An unemployed music consumer with above average knowledge of the radio(streaming) industy and who is biased in their views? I don't necessarily believe your answer and you could also be a Pandora insider.
You claim the situation is unfair for Pandora. But in reality, it is unfair for Pandora and artists in the USA only. Every other country attempts to pay the fair market stream rate to artists, terrestrial or satellite radio. Pandora, in the USA, is paying the appropriate market rate, which was determined by professionals. Would you agree, that terrestrial and satellite radio in the USA should pay artists what Pandora pays, in all fairness?
Why can't Pandora raise ad rates by 3%-5%-10%. That amounts to $3, $5 or $10million in net income before taxes in the 3 months ending June 2012 (I assume June). On a yearly basis, it amounts to $12, $20, $40 million net income before taxes. With 60 million listeners, advertising will mostly likely pay higher prices to an already below market ad rate schedule geared towards gaining revenue marketshare from competitors. If Pandora wants to be profitable, it can easily accomplish this task, but prefers to camouflage at break even while arguing for below market rates for labels and publishers.
Pandora should prove it cannot raise ad rates before asking for lower royalty expenses.
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