How Pandora pays musicians? Bashny.Net

The fact that music services like Pandora strimingovyh pay musicians (or recording studio) for the use of their songs has long been known - according to the principle of these services and work. Musician agrees to the use of their music, the service places composition, users listen to her, and for each listening musician (or studio) gets the money.

The other day, Pandora founder Tim Westergren (Tim Westergren) reported how many musicians receive for each "scroll" their music users. It turns out, сумма very, very small .

Payment is only 0.0014 US dollars for each audition. This is about 80% less than that of Spotify, a service that pays musicians amount of 0.006-0.0084 US dollar for each audition.

Even more interesting is that Pandora is now struggling with SoundExchange for the right to reduce the payment of up to 0, 0011 US dollars. The results of this dispute will be known later - at the end of this year.

Despite these payouts, the total amount that Pandora pays studios and musicians, is very high: in 2014 were paid 446, $ 4 million. This is about half of total revenue, which amounted to $ 920 million. This year, according to Westergren, the company is going to get a revenue of over one billion US dollars. In this case, the service recognizes that the amounts paid to artists, is very small.

In order to attract musicians, the company introduces new buns. For example, musicians can now record short audio messages that users can listen to. Lenny Kravitz - the first performer to use the new function. «Artist Messaging» allows the performer who acts, such as a concert, to record a 15-second sample performance for users who expect a musician in another city, such as a week. Perhaps this will help boost sales of tickets for performances.

In addition, artists and representatives of record companies are now getting detailed statistical tool that allows you to get detailed information about the use of the service tracks visitors.

Thus, the company is trying to attract new partners, not money, and new features that may allow musicians to attract more fans to their concerts.

By the way, company last year showed a loss 30, US $ 4 million, despite 7% growth in the user base.

Source: geektimes.ru/post/246316/