Pandora releases some interesting facts about payments to artists, usage numbers

Some artists make $2 million in revenue from Pandora's streaming, many make $100k+

@tracehagan
Published Tue, Oct 9 2012 3:31 PM CDT   |   Updated Tue, Nov 3 2020 12:26 PM CST

Everyone's favorite online radio, Pandora, had its CEO reveal some interesting numbers at the SF Musictech Summit in San Francisco. Among these tidbits of information is the bit about how some artists are making over $2 million dollars in revenue from Pandora. "You would be surprised how many artists are making over $100,000."

Pandora releases some interesting facts about payments to artists, usage numbers | TweakTown.com

These payments to artists are hurting Pandora's bottom line. As it stands right now, Pandora has to pay much more in royalties than satellite providers and typical radio stations do. "We want the same standard being extended to web radio that currently is being applied to our competition," said Westergren.

Pandora pays over 55 percent of its entire revenue to Soundexchange, an agency that collects for licenses for performing musicians. This is something that normal radio stations don't have to do. Instead, they just pay money to composers. As Pandora has gained users, their losses have continued to mount. If musicians want Pandora to be able to stick around, they're going to need to lower their fees.

Another interesting bit that was released by Pandora at the summit is the fact that the company now streams more hours of music per month than YouTube streams hours of video. I'm sure YouTube is still transferring more data overall.

NEWS SOURCE:gigaom.com

Trace is a starving college student studying Computer Science. He has a love of the English language and an addiction for new technology and speculation. When he's not writing, studying, or going to class, he can be found on the soccer pitch, both playing and coaching, or on the mountain snowboarding.

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