How does pandora make money

Knowing what kind of money your music is generating is important, and as the infographic above illustrates, a play on Pandora can generate a few different kinds of royalties. Interactive streaming , also called on-demand streaming, is when the user chooses exactly what they want to listen to. Again, think Spotify or Apple Music. To complicate things in your mind though, Pandora HAS gotten into the interactive streaming game too with the launch of Pandora Premium.

And Pandora Plus , the ad-free version of their non-interactive radio service, now has a replay function which DOES generate the royalties associated with interactive streaming that I will list below.

Unlike publishing royalties which get paid to publishers and songwriters , digital royalties get paid to:. They do not pay that portion to SoundExchange.

Just like with terrestrial radio play, the songwriter and publisher are owed a performance royalty for the broadcast of their music. The ideal entry-level account for individual users. Corporate solution including all features. Statistics on " Pandora " The most important statistics. The most important statistics. Further related statistics. Further Content: You might find this interesting as well. Learn more about how Statista can support your business. Sirius XM Radio. February 2, Pandora's revenue from to , by source in million U.

In Statista. Accessed November 12, Statista Inc.. Accessed: November 12, Purchase now. But 20 years ago, the music industry was in a far different position.

Physical sales accounted for the vast majority of revenue and music labels controlled the distribution model. Even though the system worked, Pandora originally called Savage Beast Technologies spent four years attempting to license the technology to AOL, Best Buy and the music industry.

Nobody wanted anything to do with it, so in , Pandora launched its own discovery service on the web. Some things have changed, Pandora now uses artificial intelligence to instead of musicians to categorise the songs. Analyse your app, build better products and user experience. Pandora was the first online service to make personalisation a key part of the experience, which has been imitated by Spotify and Apple Music.

Tesla stock — Should you invest? Robert Kormoczi Founder of Times International. Related posts. How much can you earn with Apple Music? Robert Kormoczi How to get more Streams on Spotify? How much can you earn on Spotify? How to start a podcast on Spotify? Guest Poster Where can you promote your Podcast? How much can you earn with Tidal? Leave a Comment Cancel Reply Save my name, email, and website in this browser for the next time I comment. Times International. All Right Reserved.