questionsare you going to help support internet radio…


Pandora is a free service and in order for it to stay free it has to stay under a certain budget. I get where they are coming from. But please DO NOT compare yourselves to SiruisXM. They are two completely different animals. There are sports, talk, and news channels on SiriusXM. I would also think a chunk of their customers are their because of Howard Stern. Pandora offers music and only music.


Could you link to a copy of this "Act"? I'm too tired/lazy to look it up.


I got XM radio so I could listen DJ free and listen to a LOT less advertising and MORE music. It's become the same crap as terrestrial radio. Didn't realize internet radio stations like Pandora get hammered like this. Off to google.


I like the idea of artists getting paid and I think the payment structure was all about stopping the big scary Internet from getting in the way of the major labels. If they really wanted all that money to go to the artists, they would have pushed it on Clear Channel too. Unless there's some hidden sub-clause about funding the TSA, I support having all radio pay the same royalties.


More information here:

And from a comment on that article: "The thing that is most important to note here, which is missed by the article (and most articles about this issue), is that the % that Sirius and other companies pay is a flat rate % based on revenue, with a few guaranteed minimums. That's a safe structure that companies can factor into their financial model.

The rate that Pandora pays is a per stream fee of (what is supposed to be $0.002 but has been discounted to) $0.001 every time they play a track for a single user. The reason a per stream fee is such a tough situation is because, as Pandora launches in a new line of vehicle, or experiences some other successful growth, the price of their royalties immediately goes up from this new audience, even though they have not yet had a chance to secure ad sales for the increased reach."


This is a bill designed to fix a poor business plan.
Pandora knew, or should have known, the royalty situation they would find themselves in. Now that they're losing money, they're calling it "fairness" and have this proposed bill to fix it.
See for a Forbes article giving one opinion on this proposed bill. Or see another at Geekwire: