I can't see how they can compete with Spotify, Apple music etc. We can't get Pandora here in the UK, so I don't know about them.
Personally, I'd rather get the fairly meagre (but not as bad as they are made out) royalties from Spotify, if it means people are listening to my music.
Here's something sobering to consider about Spotify. The major record labels own a portion of it, so they have an advantage over small indies by making money off the front end and the back end, and could potentially use their ownership to put the squeeze on indie label royalties while increasing their ownership returns via Spotify. This effectively co-opts the larger labels by giving them a piece, while leaving the indies hanging out to dry. Pretty insidious:
Left for dead by most investors and pundits, the surviving Big Three labels–Warner, Universal and Sony–have quietly muscled out stakes of the hottest digital entertainment startups, including 10% to 20%, collectively, of the established streaming services, such as Spotify and Rdio. Terms are similarly stark for younger startups: The labels take stakes for free or on the cheap, and then often give themselves the right to buy larger chunks at deep discounts to market later on.http://www.forbes.com/sites/zackomalleygreenburg/2015/04/15/revenge-of-the-record-labels-how-the-majors-renewed-their-grip-on-music/