Is the music industry in complete turmoil, or just a transitional phase? Perhaps it is a mixture of both, as executives and innovators struggle to come up with a profitable solution. Above are two graphics that demonstrate the current economics of the streaming music industry, which is claimed to be the cutting edge method for music consumption today. While Pandora was seeing huge lifts in their stock price the other day, their net losses continue to worsen. Beyond that, Pandora has struggled to adapt mobile advertising and other revenue generators.
Does this mean Pandora, Spotify, and other streaming models are not coming up with long-term fixes for the declining music industry? What direction is the music industry headed in and what are going to be the incentives for artists to continue to pursue a career making music in the future? [via]
Note: We got these charts from Statista.
Pandora is re negotiating their contracts in 2014. They are the only ones that pay extreme royalty costs compared to sirious and normal mainstream radio and are the up and coming format. Couple more years and pandora will be on top