Despite reporting revenues of over $200m each in the past year, music streaming services Pandora and Spotify still can’t turn a profit, as this chart from Statista shows.

The problem is the high cost of music royalties. Pandora paid 54% of its revenue to artists and Spotify claim they pay 70% of their income back to the industry.

Is it time for the music business to lower its royalty rate?

 

Posted in: Infographic of the day, News