Royalties Keep Streaming Music Subscription Sites from Being Profitable
By Minal Bopaiah A new report predicts that subscription sales for streaming music will double by 2017, but profitability will be nearly impossible for most subscription music models. The report issued by Generator Research states that the main reason for unprofitability for services like Pandora, Spotify and Rhapsody is that those services are paying 60% to 70% of revenues out in royalties to artists and record labels. That's a HUGE percentage, especially when you consider how much Apple's…
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