Assetbar has a great post on Pandora that I honestly regret having not posted (or realized for that matter) myself...
Pandora’s numbers don’t make sense to me. Have you done the math? Have I done it correctly?
Users LOVE Pandora, but their CEO Tim Westergren says the outrageous fees being charged by sound exchange will shut them down. He apparently thinks his app isn’t worth 44 cents per month to users.
Take a look a the fees that will shut down the site: the current rate is $0.0014 per song per listener. That’s 14/10,000 of a dollar. A little more than a tenth of a penny per song. If you listened to 10 songs each hour, licensing fees would cost around 1.5 cents per hour. At 20 songs per hour, that’s a killer 2.7 cents! Hey, I could pay that.
To spend a whole DOLLAR on license fees, you would need to listen to 2,142 songs. online. streamed to you.
Read the rest here.