By the sound of it you’d think that Pandora pays a lot of money to artists compared to something like Sirius XM radio. Pandora keeps comparing the percentage paid to artists (50%) to satellite radio (10%). And they keep crying out for “fairness”.
This is really manipulative. Pandora is largely an ad supported model. Sirius/XM is subscription supported. As a result Sirius has much better revenues. It doesn’t make sense to compare percentages.
Let’s look at what the two services really pay!
So for the 3rd quarter of 2012
Sirius paid Camper Van Beethoven $2,213.70
Pandora Paid Camper Van Beethoven $91.07
And terrestrial radio? Or what civilians call normal local FM/AM?
well… let’s just say they paid me A LOT more than either of these services.
Now wait a minute!! Pandora supporters say that terrestrial radio doesn’t pay any royalties to performers. That’s true, but only technically true. Because of a quirk in the laws terrestrial radio pays THE SONGWRITERS not the performers. Often times they are the same. sometimes not. But terrestrial radio is paying royalties. Pandora is purposely distorting the facts.
Shareholders: what other facts might they be distorting?