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Pandora Media, Inc. Message Board

  • itsoutofcontrol itsoutofcontrol Aug 8, 2012 10:25 PM Flag

    Serious questions for P followers

    If you are listening to music on, the following info appears if you click on: Why ads?

    Ads help us pay the bills. Free Pandora listener accounts are primarily supported by advertising, including video, audio and visual advertisements.

    Pandora's streaming music service is associated with significant costs, including music royalties we pay on every song we play, each and every time we play it. Advertising allows us to cover those costs while offering you a lot of great music for free.

    Upgrading your Pandora account to Pandora One, our paid subscription option, will remove all forms of outside advertising from Pandora. You can upgrade to Pandora One here.

    Clicking on another link reveals you can get rid of ads for $36/year.
    Unless you want the app, does anyone really care if ads appear when the music is free?

    Is it possible to listen to so much music that the $36 per year does not cover the royalty fees? How much are royalty payments per song?

    If royalties are 2 cents/song x (10 songs/hour) x (just 2 hours/day) = 40 cents

    (40 cents/day) x (5 days/week) = $2.00

    $2 x 50 weeks = $100
    Even if royalties are just a penny, the annual subscription does not cover listening for just 2 hours a day.

    Just trying to figure out at what point they will make money from a listener/user.

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