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Pandora: On Its Last Legs
Techtree News Staff, Aug 18, 2008 1804 hrs ISTMost popular web radio service is being hit hard by a recent federal panel judgment
Pandora, one of the US's most popular web radio service is being hit hard by a recent federal panel judgment doubling the per-song performance royalty that Web radio stations pay to performers and record companies. Founder Tim Westergren quips, "We're approaching a pull-the-plug kind of decision. This is like a last stand for webcasting."
Pertinent to note is that traditional radio stations in the US are not bound by any such laws. Neither is satellite radio, which does pay a substantially lesser amount as license fee. Pandora, according to some estimates, is set to pay almost 70% of its projected revenue about $25 million in royalty fees. This is about Pandora. Other online services too are hit bad and are on the verge of pulling the plug.
There has been widespread protests last year directed at eliminating the exorbitant royalty fee however most of it were ignored and the situation seems to be getting grim.
Pertinent to note is that traditional radio stations in the US are not bound by any such laws. Neither is satellite radio, which does pay a substantially lesser amount as license fee. Pandora, according to some estimates, is set to pay almost 70% of its projected revenue about $25 million in royalty fees. This is about Pandora. Other online services too are hit bad and are on the verge of pulling the plug.
There has been widespread protests last year directed at eliminating the exorbitant royalty fee however most of it were ignored and the situation seems to be getting grim.
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