Pandora Faces Significant Profit Headwinds With Proposed Royalty Hike And Department Of Justice Review

Free music providers such as Pandora pay a royalty fees to songwriters and labels on per performance basis. It is interesting to note that at current royalty rates, with which the music industry isn't satisfied, Pandora is not profitable. The company reported net loss of $16.7 million in 2012, $38.1 million in 2013 and $42 million for the first nine months of 2014. While Pandora is already struggling to generate profits, a proposed rise in royalty rates and the ongoing Department of Justice revi...