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Re:Pandora Paid Over $1,300 for 1 Million Plays by sliverstorm on Wednesday June 26, 2013 @04:04PM (#5948632)
Sounds like the pricing structure all works together very well, then. 5 hours per day sounds like a good point which plenty of people can easily eclipse, but the majority will not, keeping the service profitable.
Re:Pandora Paid Over $1,300 for 1 Million Plays by Retric on Wednesday June 26, 2013 @05:06PM (#5949059)
Licencing is hardly there only cost.
Re:Pandora Paid Over $1,300 for 1 Million Plays by sliverstorm on Wednesday June 26, 2013 @05:10PM (#5949082)
Yes, but they said it was 50% of revenues. I believe Pandora is profitable, so the sum of all other costs must be less. This means that the breakeven point is actually somewhere between 2.5-5 hours. 5 hours per day is not a magic number- I think 4 or 3 also sound perfectly fine, based on the usage patterns I see.
Re:Pandora Paid Over $1,300 for 1 Million Plays by spullara on Wednesday June 26, 2013 @05:18PM (#5949152)
Pandora is actually operating at quite a big loss:

http://finance.yahoo.com/q?s=P&ql=1