How Copyright Could Sink Your Pandora Station

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Josh Smith
April 16, 2014, 5:57 a.m.

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.

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