AFAIK, Pandora is classed as radio, and doesn't have to do direct deals with the labels. They pay royalties to SoundExchange, which in theory distributes the ro

AFAIK, Pandora is classed as radio, and doesn't have to do direct deals with the labels. They pay royalties to SoundExchange, which in theory distributes the royalties to the content owners. The rates they pay are a lot lower than the rates companies like Rdio, Spotify, and MOG have to pay to the labels directly for on demand streaming rights.