During Congressional testimony on Wednesday, songwriter, producer and recording artist Jimmy Jam offered an interesting comparison between an Amazon MP3 download and a Pandora stream.
Using a royalty payout of 1/10th of a penny for a Pandora play, Jam calculated that if a fan listens to the same song once a day, it would take roughly two years for internet radio royalties to equal a download in terms of royalties (full testimony here).
But how does that compare to other formats? Here’s a breakdown of how different streaming, radio and download formats compare to a paid download – assuming the song gets played once a day, every day.
(i) Paid Download. Applying a standard 70 percent content owner payout on a 99-cent download. (ii) Rhapsody. Based on artist testimonial, shared royalty reports. (iii) Spotify. Based on artist testimonial, shared royalty reports. (iv) iTunes Match. Also, shared royalty reports. (v) Radio Station Internet Simulcast. Based on Congressional testimony of Michael Huppe, president, SoundExchange. (vi) YouTube. Based on inputs of several YouTube content creators and artists to Digital Music News. (vii) Pandora. Based on Congressional testimony of Jimmy Jam.