The rise of digital music services has the music industry in a fix. Depending on whom you ask, neither the services nor the musicians are very happy.
Sites like Pandora believe that the royalty rates they’re required to pay to stream music challenge the viability of their business model, while artists like Aerosmith front man Steven Tyler have made a case for increasing royalty payouts.
But how do the services pay for the music at the heart of their product? Well, it turns out that music royalties are a bit more complicated than the macarena.