Liar Liar Streams On Fire #5: Pandora is Wildly Profitable, Can Afford to Pay Artists

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“The sleep of reason produces monsters”-Goya

By the end of 2015 Pandora Executives  and Investors will have sucked nearly 1/2 a billion dollars in “stock compensation” out of the company.  Yet Pandora complains very publicly to the US Congress about being unable to cover royalties to performers and Songwriters. Hence the massive lobbying effort in Washington DC and endless lawsuits against performers and songwriters.  Pandora is currently pleading for lower royalties before the Copyright Royalty Board in Washington DC.

Sen Ron Wyden the hand puppet of webcasters and broadcasters (and our vote for Manchurian Candidate) even repeated this crap when he announced the Pandora/broadcaster backed Internet Radio Fairness Act.

“Senator Wyden is introducing the Internet Radio Fairness Act (S.3609) to remove the regulatory shackles preventing Internet radio from being commercially viable” (italics added for emphasis).

But this is not true.  The interactive radio monopoly Pandora is not profitable simply because it doesn’t know how to live within it’s means.  It’s just math folks.  Look at the numbers.

If Pandora would eliminate the outrageous sums it is paying to executives in “stock compensation”  it would actually be profitable.

As The Specialist at Seeking Alpha notes Pandora’s own 2015 guidance demonstrates that it would have a $70-80 million dollar profit in 2015 without the $122 million in executive “stock compensation.”





One thought on “Liar Liar Streams On Fire #5: Pandora is Wildly Profitable, Can Afford to Pay Artists

  1. While this point is well taken, I would like to add another one. And namely it is not the role of the US government or the justice system to ensure that a business is able to make a profit or even stay viable. If one business chooses to purchase an item wholesale and resell that, the business has to purchase the item on a buyer seller agreement first off. Now if that business does that and somehow cannot make a profit on reselling that same item to the public, the business itself has made a bad choice and it is not up to any branch of the government to intervene buy forcing the original supplier of that item to sell it a price they do not deem viable.

    This is the basis of our legal system and we have a long history to show this. Why does Pandora think otherwise? And why does our justice system seem to think it is it’s role to do so as well

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