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Greed of the Music Buisness, part ad nauseam
by Dagmar at 6:29 pm EDT, Sep 23, 2010

Pandora is abandoning plans for a launch in Canada, because basically Re:Sound (the agency that collects the fees) wants the greater of two amounts...

45 per cent of the site's gross revenues in Canada or 7.5-tenths of a cent for every song streamed

I don't know about you but I don't really know of any business that could survive being asked to turn over nearly half or more of their gross revenue. Profit margins just generally aren't that large outside of certain branded luxury goods or completely monopolized markets.

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