Pandora readying for last call
No question Pandora is the most run program on all of my computers. The internet radio station that only plays the kind of music that I like is uncanny in its ability to determine what music fits my tastes. I have discovered more new music and especially indie artists by listening to Pandora than all other ways combined. It is with total indignation that I read in the Washington Post today an interview with Pandora’s founder, Tim Westergren, who admits that Pandora is near its "last stand" as a result of the organization that represents musicians raising their royalties once again.
Pandora is due to pay 70% of its revenue in royalties this year, a percentage far more than either conventional broadcast radio or satellite radio. Conventional radio pays no royalties at all as a matter of fact. Webcasters currently have to pay a royalty for every song played and for each listener they have. Pandora will pay $17 million of their $25 million in revenue this year and Westergren says that there’s just no sense in continuing when the business model is so broken. Pandora already can’t have listeners in most countries outside the US due to silly RIAA rules which is also crazy. There is no better way for new artists to be discovered which in the long run benefits artists and record companies. What a shame.
This is very disappointing news.
I too have discovered numerous artists via the service, whose CDs I’ve later purchased.
I agree that it’s very disappointing and sad news. Being from Canada, I was long blocked out of Pandora and have gone to other services like Musicovery, Lastfm, blipfm, seeqpod, etc. I really enjoyed Pandora for the great suggestions.
I still buy CDs being the old school person I am (besides, I enjoy the art work and liner).
I am so disappointed by this news. Pandora is one of my favorite ‘net locations. And just as PJE said, I have found so many new artists this way and have spent money on their tracks, much of which the RIAA receives a percentage. Talk about cutting off your nose to spite your face.
I read that story today too, but I don’t think Pandora or Internet radio is on its “last stand”. Mergers and buyouts seem like the next step. Pandora, in particular, seems a prime candidate to be purchased by Google. Their underlying goal of data analysis and revenue stream of selling ads are line with Google’s operation. Apple should also be interested in preserving Internet radio since it contributes iTunes content, or iPhone content in the case of Pandora. It will be interesting to see who steps in as the situation worsens.
Darn shame. Pandora on my iPhone has changed the way I listen to music. It’s replaced my stereo. I would even consider paying for the service.
Man that sucks, I like Pandora a lot. I hope all this ill will towards the RIAA and the broken system will build up towards their demise in the near future.
Yes, the RIAA is evil, no doubt in my mind. For years I wouldn’t buy music at all because of them. Now I buy quite a bit of music from Amazon [no drm]. Alot of music and books are going nondrm. Now that the business model is changing the RIAA has to harass SOMEONE in order to justify their existence.
Where’s Congress to look into Restraint of Trade? Anti-Competitive practices? Cartel?
And you all wonder why I’m voting for Nader?
The best way to deal with this situation is to kill off the Big 5 (or how ever many there are) of the RIAA. The way to achieve that is to support independent artists and services that link up indie artists and access to their recordings and live performances to listeners directly, without the need of an enormous, multi-million dollar apparatus for guessing what people want to listen to. Last.FM is better positioned than Pandora. We’ll see if Slacker can overcome its investment in already obsolete hardware technology and become a software-only enterprise, and if Dell’s new offering will be competitive. The big recording companies have no redeeming value and should be ignored as much as possible.