25% sounds like a lot but it's the raw materials--it's what they sell. Cambell's Soup has to buy chickens to make soup, flour to make noodles. Manufacturers have to pay for cloth and labor to make clothing. Pandora, which is estimated to earn 40 Mil this year, should pay for their materials too. Even people who sell dirt charge for it.
I get that the RIAA is bone-headed with how they've handled DRM (it doesn't work) and their sue happy approach is repulsive. But on the other hand, if a company is making 19 million and is expecting to up that to 40 million this year, I think the artists who create the actual product (OK, it's a delivery system, that's the product) or at least a significant part of the product, should get a taste. It's not a remote connection--without musicians there is no Pandora.
A photographer took shots at a concert I did in Italy. He offered the low rez for free. Nice! I asked if I could get a few of the shots at a higher resolution for publication. I thought: think of the exposure you'll get, I can link to your website, you'll build a following....(sound of breaks screaching) NO! He asked for 20 Euro per shot. He wanted to get paid. Was he behind the times? Maybe.
But sometimes you should just get paid for your work.