Comment Labels set the rate, not the streamer (Score 1) 305
The labels set the per-play payment rate. This is not the streamer just being cheap. The labels call the shots here. In general, a "station play", where the consumer is just listening to whatever was curated or programmed to be the next song, is of lower value than an "on demand" play, where the user specifically chose a song or album of songs to hear. So depending on the type of play, the pay rate will vary. But don't think for a second that Pandora or any other streaming service has much say here. The labels call the shots, it's their music, and if you as a streaming service don't like it, tough titties, play someone else's music then.
If you think these numbers are small, bitch at the labels.
To be fair, the streamer has huge costs; development, infrastructure, bandwidth, staff, the whole shebang. With what little money they net from subscriptions or ad revenue goes into maintaining these things. The lion's share gets paid to the content providers. If you increase the cost of the stream, yay label, yay artist, but the cost of maintaining the business becomes higher and less sustainable.
The model is by no means perfect, and the future will hopefully yield a more equitable disbursement flow, but hopefully that sheds some light. Troll away.