You are correct. I bet their hosting costs are monstrous due to their bandwidth. It would be cool if they offered artists pay per play. Everytime an ad plays before their song (unique plays only to avoid ad mining), the artist gets a half of a penny or something similar. With the exception of tracks which have purchase links.
Either way, I hope they minimalize and bounce back. I know a lot of people would be sad to see them go and it would leave a large void in the current world of digital media.
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