This happens when you owe more in royalties than you make in revenue. http://mediamemo.allthingsd.com/20110212/pandoras-music-fees-are-huge-and-not-that-bad/ h

This happens when you owe more in royalties than you make in revenue. http://mediamemo.allthingsd.com/20110212/pandoras-music-fees-are-huge-and-not-that-bad/ http://mediamemo.allthingsd.com/20110212/pandoras-music-fees... Check out what they paid in 2009 for royalties. Yeah. That might lead to some big funding rounds and some major dilution.