Pandora Radio’s Days Could Be Numbered

Internet radio darling Pandora is in very real danger of going out of business. Ever since last year’s federal decision to dramatically increase the rate that Internet radio broadcasters must pay per song played (even though terrestrial radio pays no such fee), services like Pandora have been under intense pressure.

It goes like this: last year, the Copyright Royalty Board approved new, near crippling rates for Internet music broadcasts. Now companies like Pandora have to come up with with this money, which then goes to a group called SoundExchange, which, ostensibly, collects royalties on behalf of recording artists and the record companies that represent them.
Pandora says that paying that type of bill would eat into 70 percent of its revenue (not even profit, but revenue). As a dollars and cents matter, Pandora simply cannot afford to stay in business if it truly has to pay the new fees.
A California congressman is trying to work out a deal between SoundExchange and Internet-based broadcasters, but he’s gotten nowhere.
Best use that Pandora application on your iPhone while still you can.
Giant of Internet Radio Nears Its ‘Last Stand’ [Washington Post]
Pandora Radio