The Copyright Royalty Board, made up of three federal judges in Washington, is set to rule by Tuesday on the royalty rates that webcasters like Pandora will pay record companies for the next five years. These royalties are Pandora’s single biggest expense — they amounted to 44 percent of the company’s revenue last year — as well as its biggest hurdle to profitability.
Source: For Pandora, Ruling on Webcasting Royalty Rates Is Crucial – The New York Times