Pandora generates more than $2 billion in royalties

Back in the 90's, buying CDs was a passion of mine. Not only would I be knowledgeable about all of the release dates for my favorite artists, but I would go to midnight store-openings to buy them. Then, alone in my bedroom, I would listen to all of the discs and drift away.

Nowadays? Not so much. While I still adore music -- especially hip-hop tunes -- physical media is not part of the equation. Streaming media services are my gateway to music, and it is largely very satisfying. Apparently, I am far from alone in my love for streaming. Today, Pandora -- a very popular streaming service -- announces it has generated more than $2 billion in royalties for artists and songwriters. Yes folks, streaming is legit.

"Pandora has taken some big steps in recent years to support the industry, investing heavily in tools and resources to help artists grow their careers and more easily connect with fans. Its Artist Marketing Platform (AMP) launched in October 2014 and continues to expand with new innovative offerings such as the recently introduced AMPcast, a free platform that allows artists to record and deliver targeted audio messages to their entire Pandora audience right from their mobile phones. Early campaigns have yielded dramatic results with engaging fans, selling tickets, promoting new music and driving greater listening", says Pandora.

Tim Westergren, founder and CEO of Pandora explains, "the rapid acceleration of royalty payments from internet radio is very promising news for the industry. We are delighting listeners, driving discovery for new music, and creating powerful new promotional tools for musicians, all while creating a massive new revenue stream for labels and artists that has never existed before from radio. Music makers and the art they produce are the backbone of Pandora, and I’m proud that we now play such a large role in helping them thrive and grow their careers".

While piracy has likely hurt the music industry, it has not been its demise as some pundits predicted. Maybe artists and songwriters are making less now than in decades past, but with more than $2 billion dollars being paid out -- from just one service -- there are still lucrative opportunities for those in the music industry.

Are you impressed by Pandora surpassing $2 billion in all-time royalty payments? Tell me in the comments.

Image Credit: Kar / Shutterstock