So Pandora claims they can't turn a profit due to high royalty rates. Artists claim Pandora pays them next to nothing in royalties. Should the rates charged t

So Pandora claims they can't turn a profit due to high royalty rates. Artists claim Pandora pays them next to nothing in royalties. Should the rates charged to consumers be higher? Or would that money just get sucked into the record company vortex, never to be seen again? Where does this money go? Why? What service is being provided by those taking the money?