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Pandora may pull the plug on itself

PandoraThe Washington Post is reporting that Pandora, the Internet radio station available on Mac, iPhone, and iPod touch, may be shutting down service soon.

The reason is that Sound Exchange, the money-grubbing blackmailers royalties collection arm affiliated with the Recording Industry Association of America, has imposed restrictive administrative fees ($500 per year per channel) and ridiculous royalty fees (2.91 cents per hour per listener) on Internet radio stations. While many companies that provide Internet radio services have been lobbying Congress for relief, there doesn't seem to be much of hope that happening in the near future.

What this means for all Internet radio stations is that either Congress steps in and attempts to resolve the royalty issues (not likely, considering their record on resolving any issue...), or the stations will need to start charging a subscription fee for their services. Of course, Pandora could start advertising on their site and on the iPhone app to generate some revenues, but as TechCrunch.com's Michael Arrington says, "Perhaps Pandora must be our sacrificial lamb" to focus attention on the entire issue of the recording industry, digital rights, and internet radio stations.

What's your opinion on the intenet radio royalty issue? Leave us a comment.

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The Washington Post is reporting that Pandora, the Internet radio station available on Mac, iPhone, and iPod touch, may be shutting down...
 

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nomadic0ne

**This reader's opinion of SoundExchange and the RIAA has been censored due to the extreme vulgarity used.**

August 29 2008 at 10:00 AM Report abuse rate up rate down Reply
Travis@Myxer

I think that Pandora did a good job getting one main sponsor and taking over their home page in a way that continued to enhance the site as well as get the advertisers point across. They also did a good job educating the listener about the music, other songs/album available, and then pointing the user to digital downloads that ultimately produces money for the artist and record labels. The record labels included in the RIAA are the ones working with a dieing business model and are looking for new ways to squeeze money out of those companies who use their content. What they do not realize is that Pandora is driving awareness and traffic to their artists and by taking down Pandora they are burning another bridge of an company who create a wonderful music promotion product. I have personally downloaded song off of iTunes I would have never previously found or pursued because of their exposure through Pandora. The RIAA may be attempting to generate more money and protect the rights of the artists but they are closing market stimulators that in the end generate business for them.

August 21 2008 at 5:52 PM Report abuse rate up rate down Reply
Howard

Screw the RIAA - I have not bought a new CD in almost a decade. I do not listen to the radio and am happy with music from 10+ years ago.... I refuse to support the Record Industries mafia, and that is what they are, the mafia.

When the RIAA removes their head from their hind end and gets reasonable then I will buy music again. Really the only reason they have any power is that we allow them to. You want to remove their power, do not buy another album until they no longer do. No more iTunes music, not another damn CD. Rip what you own, sneakernet it to your friends and never, never, never give in.

Failing that at least use only your local record (music) store to purchase music, no chain, no iTunes and especially no Wal-Mart (they are the biggest retail chain) until you hear the scream of pain from the lack of profits.

The RIAA is a profit hungry group of gestapo a**holes who need to no longer exist. There is only one way to make that happen.

August 20 2008 at 10:25 AM Report abuse rate up rate down Reply
Mark West

Pandora plays music: everybody makes money.

Pandora doesn't play music: nobody makes money.

Can we all say, "Let's get that bit torrent cranking..."?

Greed just makes you stupid.

August 19 2008 at 9:40 PM Report abuse rate up rate down Reply
Pauldy

Drama Rama! For real this isn't a big deal it's just nother case of the music industry shooting themselves in the foot witht he biggest gun they can find. Let them strangle themselves to death. Meanwhile Pandora needs to setup as many avenues for attracting Independant music as possible to circumvent Sound Exchange and cut them off at the knees. Their own service will then be able to bubble up true talent which can then setup a second company to represent and distribute music for. This content delivery setup works and as a business model they are now poised to over run the music industry and they won't know what hit them especially as more mobile devices become internet enabled it's inevitable.

August 19 2008 at 1:29 PM Report abuse rate up rate down Reply
Sam

I would gladley pay for the service AND the iPhone app. I have bought a lot of CDs because of Pandora. This is good! I don't get why they're forced to pay these rediculous fees! They're introducing people to new music! That's good for the artists AND consuomrs. The RIAA is just a bunch of greedy motherf--kers. They're just digging their own grave...

August 19 2008 at 1:16 PM Report abuse rate up rate down Reply
Charles Scalfani

Pandora is the perfect radio station that has introduced me to more music in the last year that terrestrial radio has in 15 years.

I too would gladly pay up to $15 a month for this service.

August 19 2008 at 12:48 PM Report abuse rate up rate down Reply
Jared Vorkavich

I'd be happy to pay a small fee for Pandora, but do the record companies really need to make any more enemies. Have they not yet figured out that their customers and distributors are not the enemy? I listen to Pandora to find new music to BUY! What the hell is wrong with the record companies? Don't they want my money for album sales. I thought that was the business they were in.

August 19 2008 at 12:11 PM Report abuse rate up rate down Reply
froboy

Here's what I had to say...

http://img48.imageshack.us/img48/4190/soundexchangepetitionxi3.jpg

August 19 2008 at 10:46 AM Report abuse rate up rate down Reply
Mario

I think there is another option to elude having to pay: Locating the service in a country where Internet radios can still broadcast for free. I am from Argentina and no regulations about this are in place yet.

August 19 2008 at 9:17 AM Report abuse rate up rate down Reply
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