Price For Listening: Do Streaming Services Make Money?

Pandora

Thanks to Jay Z, the music industry had to institute new rules when it comes to how we chart music. His epic deal with Samsung meant that physical sales were no longer the only way you can land on Billboard. Now, YouTube views and streams can count as sales.

Companies like Slacker, Pandora and Spotify look to rake in the big bucks you would think. You might be wrong. While more music and more people listening would allow for those sites to charge more for advertising space, according to Pandora’s CFO, it costs the company more when you listen more.

Read more about the issues streaming companies are dealing with when it comes to daily operational costs here

Source: NPR

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