Mar 21, 2018

03/21/2018: Why the streaming business is so tough

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If you’re not Apple, Google or Amazon, the music streaming business is tough. Last week, iHeartMedia filed for Chapter 11 bankruptcy protection. Pandora moved to renegotiate its costly deals with record labels last week, and Spotify is reassuring investors that…

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Music streaming is a tough racket, unless you're Apple ...

Music licensing fees make it almost impossible to turn a profit in streaming.
JONATHAN NACKSTRAND/AFP/Getty Images

If you’re not Apple, Google or Amazon, the music streaming business is tough. Last week, iHeartMedia filed for Chapter 11 bankruptcy protection. Pandora moved to renegotiate its costly deals with record labels last week, and Spotify is reassuring investors that it can turn a profit as it prepares to go public next month. Marketplace Tech host Molly Wood spoke with Paul Sweeney, media analyst at Bloomberg Intelligence, about why it’s so hard to make money in streaming.      

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