…by my calculation it would take songwriting royalties for roughly 312,000 plays on Pandora to earn us [Galaxie 500] the profit of one– one— LP sale. (On Spotify, one LP is equivalent to 47,680 plays.)
Oh, and there’s more:
Pandora and Spotify are not earning any income from their services, either. In the first quarter of 2012, Pandora– the same company that paid Galaxie 500 a total of $1.21 for their use of “Tugboat”– reported a net loss of more than $20 million dollars. As for Spotify, their latest annual report revealed a loss in 2011 of $56 million.
The full story is here, interesting throughout, and for the pointer I thank HL.