New Data Cites Growing Losses For Pandora, Spotify
September 4, 2012 at 10:32 AM (PT)
While audiences seem to be flocking to Net radio services such as PANDORA and SPOTIFY, industry observers -- including PANDORA's own hierarchy -- have claimed that the cost of doing business is pricing them out of their own market. MASHABLE.COM has posted a couple of charts, compiled by STATISTA.COM, that clearly illustrate that as 2012 has gone on, the rise in PANDORA's revenue growth has not kept up with the rise in content acquisition costs. And SPOTIFY is going deeper into the red, too.
What's even worse, the disparity between revenue growth and content acquisition costs are expected to grow the rest of the year and well into 2013 -- and not in a good way. It certainly explains why PANDORA has been lobbying so hard to reduce its performance royalty rate.
Check out all the charts here.