I stumbled across this blog post from the leader of the band Cracker. Their song "Low", a favorite of mine from the nineties, was played 1 million times on Pandora and guess what David C Lowery's cut was? $16.89.
It seems those experts on the Internet and ecommerce the Library of Congress is still setting the royalty rates for electronic music. And apparently, they are still doing a poor job at it (imagine that!). Anyway, check out the blog post and comments, very informative.
Years ago I was very interested in running my own Internet Radio station. And the government, in the form of the CRB, passed regulations which made it virtually impossible for the little guy to have such a hobby. Try to cover all those fees for a Celtic music station, ya right.
I always thought we should be able to trade or stream lower quality MP3s (64k or 96k) for free. Then, high quality MP3 or AACs (128k, 160k, or higher) would require licenses and such. But alas, it looks like insanity still reigns and everyone loses.