Pandora alternatives

Now that Pandora is terrible and ad-ridden, I found this today: http://www.earbits.com/ Enjoying quite a bit so far. I wonder what the dynamics of this are. It sounds like a classic case of new entrants offering more for lower prices in order to build market share. In the movie/TV industry, that would be a little more dubious, since contracting is voluntary--and thus the content controllers can basically extract near-oligopoly profits from middlemen like Netflix and Hulu. But I think for music streaming there is compulsory licensing (c.f. recent articles on how little artists get paid from even hits on Pandora et al.) and thus middlemen are fairly free to price how they want.