NEW YORK ( TheStreet) -- I heard a curious interview via Bloomberg Radio on Tuesday.I suggest you take the time to give a listen to as much of the 9 minute 15 seconds with Indie artist Blake Morgan as you can. From there I will explain why, as well-intentioned, passionate and incredibly talented as he is, Morgan, sadly, has no idea what's he talking about. He rants what is, by and large, a fatally flawed argument.
Salient Point 1: Pandora pays what it is supposed to pay. The company does not set royalty rates. It simply sends checks, at a board-mandated rate, to Sound Exchange (to cover licensing payments to labels and artists; Sound Exchange takes an administrative fee) and, as a result of a deal with the performance rights organization (PRO), to cover publishing rights for songwriters and composers. You can read a bit deeper into how that works over at The Verge. In any event, it's no lie. Guys like Blake Morgan do not make very much money when Pandora plays their music. Drake. Usher. Taylor Swift. Bruce Springsteen. They all do relatively well. Cumulatively -- as in, take all of the spins under a particular label's umbrella -- the music industry does all right.