Save Internet Radio: A Noose around Pandora’s Neck

By: Lior | in: General, Music, Technology |

Pandora’s founder, Tim Westergren, appealed for public support this week in response to the US Copyright Royalty Board’s decision for a whopping 140% escalation in internet radio royalty fees over the next four years, denouncing the decision in a letter that has rapidly snow balled on the web.

Pandora

“The survival of Pandora and all of Internet radio is in jeopardy…” Westergren starts. “The new royalty rates are irrationally high, more than four times what satellite radio pays, and broadcast radio doesn’t pay these at all. Left unchanged, these new royalties will kill every internet radio site, including Pandora.”

Such news brings back a bitter taste from the days of ubiquitous filesharing and the mixed signals aired by a struggling record industry. Ironically, this sharp increase in rent may drive the small timers to operate illegally and the leaders, such as Pandora, to charge for something most of us won’t pay for anyway after having it so good for so long. Who wants another dose of the majors going after pirate radio? Boring.

I don’t believe the Copyright Royalty Board is asking whether [most] artists are being compensated fairly for their work nor do I believe that this decision addresses a gray area in tracking and reporting streaming media. I do believe, however, that the musician community at large would opt for coverage before higher royalty rates and the leverage college radio receives (as opposed to Top 40) should be considered for individuals and parties with certain services online. After all, if we don’t protect the little people – those who start a blog, host a podcast and generate content – we will be ‘surfing’ the dial from one Clear Channel to another.

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Posted on April 21, 2007

Comments

12 Responses to “Save Internet Radio: A Noose around Pandora’s Neck”

Charbarred on April 21st, 2007 2:31 am

It’s well worth signing the petition. This will eventually hurt the music blogs as well as our favorite online stations. There’s more at Each Note Secure: http://www.eachnotesecure.com/save-net-radio/

Giovanna on April 21st, 2007 8:13 am

This is unacceptable! Closing Pandora would be the death of new music.
Nevertheless, I am sure this absurd threat has aroused dissent all over the world…I will certainly sign the petition and tell all my friends, we must stop this.
Thank you for spreading awareness about this important topic.

geekgasmic.com on April 22nd, 2007 8:11 am

Save Internet Radio: A Noose around Pandora’s Neck

Pandora’s founder, Tim Westergren, appealed for public support this week in response to the US Copyright Royalty Board’s decision for a whopping 140% escalation in internet radio royalty fees over the next four years, denouncing the decision in a l…

drmike on April 22nd, 2007 10:22 am

Just for reference, broadcast radio stations do pay copyright and royalty fees.

ipodwheels on April 22nd, 2007 5:23 pm

Signed. This looks more like a noose around the listener’s neck. Pandora is a free service that allows one to have a virtual dj that will play one’s genre or song of choice.

I think they should apply high royalties to those “pay before you listen” radio sites.

Another downgrade attempt to music.

ipodwheels on April 24th, 2007 12:04 am

I just got a reply from Senator Dianne Feinstein and these are some exerpts from it. I am not sure if the response I got was an automated reply but I think it’s worth the look.

“Although a few webcasters have recently claimed that the process was unfair, it was not arbitrary and allowed representatives from all sides to make their cases.”

“While some webcasters may choose to pay this rate, independent negotiations between the parties are still possible and this new statutory rate would serve as the ceiling. Additionally, if it appears that the new rate will reduce the overall amount of webcasting - as well as the overall income from this stream of revenue - the copyright owners may still have an incentive to offer webcasters a rate less than the statutory rate.”

“I am a strong believer in intellectual property rights and believe that artists and performers have earned the right to be fairly compensated for the broadcast of their works by webcasters who benefit - financially and otherwise - from their talents. Without fair compensation, these artists would not create their works.”

I am happy that I got a prompt response from the petition. I honestly do not have an idea as to how the ruling was achieved or through what processes it went through. Though it saddens me that the enforcement of this may really kill a lot of music webcasts, I think that a compromise may be reached where both parties will benefit.

For the moment though, I am crossing my fingers.

Charbarred on April 24th, 2007 5:16 am

According to this reply it seems that the general rule is: “If you’re a big rich site, you’ll pay up, if not, we can talk”. Saying that, as opposed to regular radio stations, these sites usually link to Amazon, generating sales for the artists. I think this should be acknowledged. Maybe they should work out a “Sales Generated” clause that will be deducted from the royalty fee.

ipodwheels @ Auto Parts Place on May 4th, 2007 1:22 am

“We are deeply, deeply sorry to say that due to licensing constraints, we can no longer allow access to Pandora for most listeners located outside of the U.S. We will continue to work diligently to realize the vision of a truly global Pandora, but for the time being we are required to restrict its use. We are very sad to have to do this, but there is no other alternative.”

Pandora has just been cut from the world. Very sad.

Charbarred on May 4th, 2007 1:49 am

I can’t believe it….It still works here in the UK…try surfing through http://www.iblocked.com/

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