FOLLOW THE MONEY.
What do you pay for when you pay for a subscription to an ad supported service like Spotify or Pandora? It stops being ad supported. So who benefits from that? Fans and artists who hate advertising. Artists who get a higher royalty rate.
Who doesn’t benefit?
Well, who do ya think? Here’s a risk factor from Pandora’s SEC filing that gives you a hint:
We rely upon an agreement with DoubleClick, which is owned by Google, for delivering and monitoring our ads. Failure to renew the agreement on favorable terms, or termination of the agreement, could adversely affect our business.
We use DoubleClick’s ad-serving platform to deliver and monitor ads for our service. There can be no assurance that our agreement with DoubleClick, which is owned by Google, will be extended or renewed upon expiration, that we will be able to extend or renew our agreement with DoubleClick on terms…
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