[longarm]

That would be a pretty bad sign. I sure as hell wouldn't invest in a company that's going to turn around and spend the money they raise on ads. They should be building a war chest and their biz dev and legal teams to get some leverage on the labels. Regular radio pays $0 of their revenue to labels, Pandora pays $.50 of every $1.

[aaronblohowiak]

Radio stations pay annual fees for the license of broadcasting music, which is why stations have to report every song they play (this data is sampled to divvy up royalty payments to labels and artists.)