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Pandora Shares Artist Payment Figures

An anonymous reader writes "Today in a blog post, Pandora has shared some details of the fees they pay to musical artists for playing songs over their music streaming service. Over 2,000 different artists will pull in $10,000 or more in the next year, and 800 will get paid over $50,000. They provided a few specific examples as well. Grupo Bryndis, who has a sales rank on Amazon of 183,187 (in other words, who is not at all a household name), is on track to receive $114,192. A few earners are getting over $1 million annually, such as Coldplay and Adele. 'Drake and Lil Wayne are fast approaching a $3 million annual rate each.' The post segues into a broader point about the age of internet radio: 'It's hard to look at these numbers and not see that internet radio presents an incredible opportunity to build a better future for artists. Not only is it bringing tens of millions of listeners back to music, across hundreds of genres, but it is also enabling musicians to earn a living. It's also hard to look at these numbers, knowing Pandora accounts for just 6.5% of radio listening in the U.S., and not come away thinking something is wrong. ... Congress must stop the discrimination against internet radio and allow it to operate on a level playing field, under the same rules as other forms of digital radio.'"

11 of 152 comments (clear)

  1. Pandora's Problem is repetition by NinjaTekNeeks · · Score: 5, Insightful

    Every day I listen to Pandora on the way to/from work. Inevitably I will hear the same track, often more than once and skip it. I use Pandora to discover new artists related to the well known artist I entered. Obviously if Pandora keeps playing the same tracks from this artist they will have to pay them top dollar, if they play obscure and less known (cheaper per track I assume) they will make me happy and lower expenses. I blame Pandora for this problem, not the artists.

    1. Re:Pandora's Problem is repetition by Cryophallion · · Score: 5, Informative

      This is based on their algo which is based off of your likes and dislikes. Have you noticed that after you dislike a song, they tend to play a song you liked before? They want to keep you happy. They do tend to play your artist (if you made the station based on an artist) about every 3-5 songs. That is usually because you will tend to like that artist's music, and because that is the main focus of the station.

      Additionally, if you want more range, you can add songs or artists to a certain station to better define it for you. That way, adding a techno tune to a hard rock station may bring you something more in the middle to better refine your desires for that station.

      Also, if you are having issues, make new stations. I made some for workouts, some for the kids, etc, and refined them based on those specific feature sets. I haven't had any issues with it. But the best thing you can do is add a new style to a station and give it a wider range of filters (as there is only one or two main sets to start from based on the original artist or album, further refined by your likes).

      Also, if you don't like a song, literally tell it you are sick of that song. It will drop it from the playlist for a while.

    2. Re:Pandora's Problem is repetition by SydShamino · · Score: 4, Interesting

      I think all of the channels you worked on just needed more love and attention. To get a truly great variety on a channel, they need to know a wider base of things you like and dislike on that channel.

      I have used Pandora since 2005, primarily (90% of the time) listening to the same channel. I started it from four bands I liked with similar music, and then thumbed up maybe 150-200 songs and down maybe 100-1500 over the years. At this point the station is exactly what I want to listen to at work; it plays a several hundred songs I like, I have thumbed down maybe three songs in the last two years, and there's tremendous variety with little repeating. But that's literally years of effort crafting the station.

      A pretty large number of other users created a station for themselves based on my station - I can or could see that on my profile page at one point. I think that it gets recommended to people in some fashion. One thing interesting I have noticed is that, while I've never paid for Pandora One, I haven't heard or seen an ad on Pandora since I think 2009. I've had a few conversations with employees over the years, mostly suggesting bands to add or asking (or complaining) about features they should add or removed. I wonder if they have flagged some accounts as "lead users" (or "problem users") or something like that, and have ads excluded from our accounts? Actually come to think of it I haven't hit the monthly 40 hour play cap in more than a year, either. Did they eliminate that for everyone?

      --
      It doesn't hurt to be nice.
  2. Different royalties are just the beginning by nixed3 · · Score: 5, Informative

    My family runs an internet radio service and I have to do the accounting for them each month. The article is referring to the fact that royalty accounting is handled in a way which makes it specifically designed to not work on the internet.

    Congress created SoundExchange corporation to make sure that "artists" get paid for internet radio use, however royalties on the net are astronomically higher than broadcast. For a commercial broadcaster, you owe SoundExchange $0.0021 for EACH SONG that EACH USER listens to. It's a royalty of $0.0021 / song*listener. This actually makes it so that your royalty costs scale completely linearly with increasing number of listeners (high variable cost, low fixed cost), which is basically the complete opposite of terrestrial broadcast where your fixed cost is your giant antenna and royalties are estimated and often fudged (high fixed cost, low variable cost). This makes economics of scale much more difficult for the commercial webcaster than the terrestrial broadcaster. With all the influence the RIAA has over Congress it would seem that this was intentional. It seems like a classic case of regulatory capture.

    Note that this is IN ADDITION to annual fees that go to performing rights groups such as ASCAP and BMI. Those fees are paid annually, but they are generally lower than the SoundExchange fee.

    1. Re:Different royalties are just the beginning by pavon · · Score: 4, Interesting

      On the other hand the class of license that a terrestrial broadcaster has puts an upper limit on the number of listeners they can have, while there is no such fundamental limit on internet radio. Furthermore, your revenues should also scale linearly with the number of listeners if you have a sane business model. So it makes sense that internet streaming royalties scale linearly, the problem is that the rate is much too high. And it wouldn't have to be if terrestrial radio lost it's Edison-era exception, and had to pay full royalties as well.

  3. Re:Seriously? by larry+bagina · · Score: 5, Funny

    puh-leaze. These are musicians. They live with their girlfriends.

    --
    Do you even lift?

    These aren't the 'roids you're looking for.

  4. Pandora's problem by girlintraining · · Score: 4, Insightful

    Pandora's problem is that they're cutting out the middlemen. Middlemen tend not to like that very much, especially given that most of the people in our economy are one kind of middleman or another. Money directly to people working? That's unamerican. That's communism. That's... well, you get the idea.

    Copyright law exists principally for one reason anymore these days: Middlemen. Oh sure, they talk about the artists, but there's no such thing as an artist under copyright law anymore. They're all contractors -- and their art actually isn't art anymore, they're "works for hire". I shouldn't have to explain how RIAA fucks artists, but for those who've been living under a rock until just now, let me give you a hint: It starts with a 'c', ends with a 't', and has a lot of legal language in between that says you (the artist) brings the lube, and they bring the butt hurt. Oh, and don't bother trying to look elsewhere: It's exclusive. Just you and me baby. And it will not be over quickly. And you will not enjoy it.

    --
    #fuckbeta #iamslashdot #dicemustdie
  5. Pandora's problem is their love of Apple. by Sanians · · Score: 5, Informative

    Pandora's problem is their love of Apple's minimalist design philosophies.

    In the early days of Pandora they'd occasionally post a blog entry about improvements to their song selection algorithms. These were always met with endless replies from people saying it just wasn't working for them. Many people wanted more options, like to choose the specific song attributes they're interested in hearing. Many others wanted to give more specific feedback than simply "thumbs up" or "thumbs down." I'd personally love a "never play the same song twice" option, as I too mainly use Pandora for music discovery. Anyway, eventually one of their blog posts acquired so many replies from people complaining about the performance of the service that they quickly posted something completely different and never again mentioned anything relevant to their service on their blog.

    Anyway, from what I gathered back then when they were actually talking about things, they love the "simplicity" of Apple's design, and thus seek to imitate it. One of the core Apple designs is that customization options are a no-no because they might confuse users. Instead you choose just one way that something works, and it "just works" that way, whether it does what any particular person wants or not. Thus the advanced control over the song selection process that people want is completely out of the question. You're going to hear repeats because they assume that the average listener wants it to work like a radio station that plays their favorite music, and so that's how it's going to work, even if something a little different would work better for some users.

    Also, while it's difficult to claim to know without seeing the functionality of their software, I suspect their song selection engine assigns weights to how important each musical quality is that are identical for each user. In other words, they've decided that people think that vocal styles matter a certain amount, and instrumentation matters a certain amount, and the process makes no attempt to determine how much these things matter for any particular user. Thus, if you don't judge music the same way everyone else does, Pandora doesn't seem very effective. ...and for me it isn't. I tend to listen to hundreds upon hundreds of songs before it plays one new song that I like which I haven't heard before.

    As for why I think I know so much about it, back when they had their "backstage" web site, I wrote a robot to scan all of the pages (they had no robots.txt at the time) and record the half-dozen song attributes listed for each song, then applied my own song selection algorithm to the data, judging the results by listening to the 30 second samples from the web site. Despite that I only had a half-dozen attributes per song, compared to the hundreds per song that Pandora claims to have, the results from my own algorithm were on par with what I got from Pandora. I thought about writing to them and asking for access to their database, but despite throwing everything I could at the problem, I never could get results that were obviously better than their own with the limited data I had. Thus I didn't think I'd have any luck convincing them I could do any better than they were doing. (They certainly weren't open to the idea that they could improve things on their blog.)

    It's really quite sad. They've invested a lot in creating an in-depth analysis of a large catalog of music, but they insist on not using that data to it's fullest potential, simply because someone likes clean and simple user interfaces without a lot of confusing options.

    Sometime about two or three years ago I noticed the song selection take a distinctive turn for the worse, as any time I enter a song from any of half of my favorite artists, I end up with a station that simply will not play anything other than Christian music. Thus I hear nothing but "God," "Jesus," "Lord," and "Hallelujah" which, as an atheist, annoys me to hell. I like music with lyrics that aren't depressing, and a

  6. Meanwhile... by Nemyst · · Score: 4, Interesting

    Dear Pandora Visitor,

    We are deeply, deeply sorry to say that due to licensing constraints, we can no longer allow access to Pandora for listeners located outside of the U.S. We will continue to work diligently to realize the vision of a truly global Pandora, but for the time being we are required to restrict its use. We are very sad to have to do this, but there is no other alternative.

    Pandora's biggest issue is that they're still blocking everyone outside of the US. When they finally wake up, the entire market will already be taken by other players like Last.fm or Spotify, which is a shame because Pandora does seem like a nice service.

  7. Re:Wrong occupation by mjwx · · Score: 4, Funny

    Well then what in the world am I doing wasting time writing software?!? Time to pull the old Casio out of the closet and lay down some tunes!

    OK, I understand the appeal of becoming a musician but seriously, how is you calculator going to help you?

    --
    Calling someone a "hater" only means you can not rationally rebut their argument.
  8. Re:Wrong occupation by chihowa · · Score: 5, Funny

    OK, I understand the appeal of becoming a musician but seriously, how is you calculator going to help you?

    He's the operator with his pocket calculator.

    --
    If you want a vision of the future, imagine a youtube comments section scrolling - forever.