Pandora And Internet Radio Fees
Robert Scoble posts about saving Pandora:
…Tom talking about how the business of Internet Radio is under pressure due to coming changes in how the music industry wants Internet Radio stations to pay for the distribution of music (basically the costs will triple, if the proposed changes go into effect). After we talk about the challenges that Pandora’s business faces if the fee changes go through Tom gives me a preview of their new Sprint/mobile service.
I got a pretty neat summary of the issue from Tom not too long after they recorded that interview (at least I think I got that timing right). I asked, how the new licensing fees affect pandora, Tom's response was basically "we're stuffed". They can't even drop the big record company music and stick to indy artists who'd love the opportunity to get that exposure because the licensing fee is mandatory.
It's a real shame too, after meeting Tom it occurred to me that I should go back and use Pandora again while I was in the US - I'd tried it out quite some time ago and found it good. That was my only source of music while I was over there - it just kept finding interesting music that I liked. Now I can't even go back to get the list of songs I'd given the thumbs up because Australian IPs are blocked, so I guess I won't go buy that music now.
On the plus side, Tom seemed to have a fair bit of hope that political pressure could save them just because so many people like internet radio and are writing to their political representatives. So all you US people, please get writing… and Tom, any chance of adding my IP to the allowed list?? I promise I won't blog about it.
May 23rd, 2007 at 6:22 pm
It’s fairly well documented how Internet Radio was saved last time this happened back in 2002 - by Jesse Helms, who wanted to save Christian Internet Radio.
BTW the other annoying part of this new law is that it could easily be interpreted to include all podcasts, not just streaming radio.
There is a clause in the law that says this mandatory license can be waived by the owner of the music for specific cases - so Adam Curry was considering a way to change the license on Podshow’s Podsafe Music Network so that Podshow automatically sends off the appropriate notices for all registered artists to waive the license for anyone using music from the PMN. That’s about the only thing that can save internet radio if the license isn’t changed by the various pressures the community is putting on the US government.