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They Have Financial Uncertainty? Then They Really ARE Radio
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This is an interesting article that says what a friend of mine in the business said a year or so ago. He'd penciled out the numbers and asked me a simple question: Is it possible for Pandora to ever make money? He said no, and this article agrees, pointing out that because of the music royalty deal it signed, every subscriber acquisition will cost them money and expenses will exceed revenues unless they radically raise ad rates and inventory. Yet they're not. And under that royalty deal, they'll have to try and hold on for the next 18 months, then hope to renegotiate the royalty deal, or they've got a real problem. And suddenly, terrestrial radio people have a warm feeling inside. (BNet)
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