Spotify may be racking up subscribers and challenging online music incumbents such as Pandora...

|About: Pandora Media (P)|By:, SA News Editor

Spotify may be racking up subscribers and challenging online music incumbents such as Pandora (P) and Apple (AAPL), but it's never going to be profitable, claims MP3tunes founder Michael Robertson. Among his reasons: Spotify's deals with record labels force it to accept the worst of 3 bad royalty payment options, and it has to put up with onerous reporting and file-conversion requirements.