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Barbara Krasnoff's picture
Barbara Krasnoff

The Interesting Bits ... and Bytes

Pandora: Is this the day the music dies?

I've never been a fan of current popular music -- my tastes run to the eclectic (klezmer), the badly out-of-date (1920s and 1930s pop) and downright boring (Broadway musicals and 1960s folk). Amazingly enough, though, I was able to find a streaming music site where I not only could indulge my less-than-popular tastes, but find new artists and albums to try and buy. Now, that site may be forced to go away.

Pandora, in case you haven't tried it yet, is an innovative site which allows its users to set up their own streaming music channels, according to their tastes. As users signal their approval or disapproval of various songs, Pandora uses something called the Music Genome Project to try to find other music that the same listener might like. For folks like me, who abandoned traditional radio stations long ago, it's a great place to go. But now, according to reports, Pandora could become the first victim of a disastrous 2007 decision by the Copyright Royalty board.

Back in March, 2007, the Copyright Royalty Board (CPB) decided to drastically raise royalty rates (including 17 months' of retroactive payments) for streaming Internet radio.

Apparently, in this case, the medium is the message -- at least, according to the Copyright Royalty Board. While traditional radio stations pay (usually annual) fees to ASCAP and BMI for the rights to play their artists' music, the CRB, in its wisdom, has said that companies that stream music over the Internet can no longer simply pay a percentage of their revenues for those rights -- they have to pay on a per-song basis. For a company like Pandora, whose users can have up to 100 of their own channels, this could run into a great deal of money -- according to some reports, up to 70 percent of its current projected revenue.

Pandora and other streaming music sites have fought back. In June, 2007, under the auspices of the SaveNetRadio Coalition, they sponsored a "Day of Silence" to demonstrate their plight. They got members of Congress to co-sponsor a bill called the Internet Radio Equality Act. They and their supporters held benefit concerts.

But nothing has really changed, and now, according to a recent article in the Washington Post, it looks very likely that Pandora may be one of the first streaming radio station to go under.

I can't honestly believe that the CPB really believes that it is doing anyone -- the artists or the listeners -- any favors. Its new ruling will not send any more revenues to the coffers of the music publishing houses nor to the artists they represent; it will, instead, choke off a thriving and popular method by which listeners can enjoy, experiment, and purchase music that otherwise might not get an audience.

For myself, and many of Pandora's fans, this would kill one of the best sites on the Web. In fact, I'm listening to it now. I hope I can listen to it tomorrow.

What People Are Saying

I posted about how I think

I posted about how I think Pandora can survive, let me know what you think.

http://blogs.computerworld.com/pandora_death

I really liked Pandora

Although I found a streaming internet radio station I preferred (just because I was too lazy to listen to Pandora long enough to refine it), I'm not sure how long they'll be able to continue since they're in the same boat.

A streaming music site like Pandora is more likely to generate purchases as people hear songs that they would have never listened to before and decide they like the artist enough to buy a CD.

copyright holders not artists

Do not confuse the copyright holders of songs with artists. That is a long standing ruse by folks like the RIAA et al. Who they really collect money for are the record labels and their rich executives. Yes, some money trickles down to the artists, but their income is primarily from a different payment, especially in the case of commercial radio stations. Unfortunately, the RIAA and the CRB have all of Congress trained like Pavlov's dog to equate the internet with piracy, so it is very hard to carry on a meaningful dialog. I have tried with my representative. He is very progressive, but in this one area he seriously thinks he is helping the artists by putting internet radio out of business.

Give them their props

The music corporations continue to battle the oil companies for the status of least popular industry while unlike the oil companies they are hell-bent on making less and less money. Congratulations, boys.

Music industry shuts down their one chance of ever selling me an

I haven't much cared for any new music since Freddy Mercury died. I already own everything Queen put out, and I've not heard any new acts that interest me even a tenth as much as Queen. A site like Pandora was probably the only chance the music industry had for someone like me to stumble upon some new artist that I'd be willing to buy. I guess I'll just keep my money and keep listening to the greatest band there ever was.

Idiots

Because of Pandora, I bought my first CD in ages. I was listening to a channel, and an artist popped up that I'd never heard of before, and I LOVED them. I immediately bought all 3 of their CDs.

These dip***ts that control the music industry couldn't recognize a revenue stream if it sat on their lap and called 'em mama (to paraphrase my favorite ad)

I'll pay something

I'll pay something just to keep this going. This is the best app out there for work productivity

Well, back to torrents and rapidshare

Way to cut off your nose despite your face RIAA. I have purchased at least 15 albums from Amazon as a direct result of Pandora. One of which was one of Sony's AIDS infested secuirty CD abominations. Guess I won't be giving you pieces of S**T any money any more, you don't give any to the artists anyway. Bunch of F**king criminals if you ask me.

I think Immortal Technique said it best about these leaches on creativity. As an artist its like you make a beautiful banquet dinner, and these scumbags show up and expect you to pay them to eat your food. They should be tried under RICO statutes.

Slight Clarification

The royalty rates in question are paid to Soundexchange, which is the so called independent representatives of the RIAA who represent the Music Labels. I want to make sure everyone understands who is the driving force behind these exorbatant fee's.

BMI/ASCAP on the other hand represent the publishers of the music. Their rates are based on page views of a given Radio website. While I find this system odd given the actual medium in question is audio streaming, they do offer a more fair flat fee.

The major music labels do not want you listening to fringe music. This offers them no value. They would prefer to control what you can hear so they can sell more Brittany Spears albums. These fee's were designed to shut down those of us who have a voice outside the mainstream music industry.

I have already shut down our Punk Rock station and I am considering shutting down our Hard Rock station because I can no longer justify the thousands of dollars this hobby is costing me. I have also stopped buying music personally as I no longer wish to support an industry that feels the need to abuse it's customers.

Check the facts

Barbara, you state that terrestrial radio stations pay artists via BMI and ASCAP, but in reality, those stations usually pay nothing to the artists. They pay only the songwriters and music publishers - not the performing artists and record companies. Granted, sometimes those artists do write their songs, but most of the time they do not. It makes a big difference. For example, performers like Elvis Presley, Frank Sinatra, and Britney Spears, for example, rarely wrote the songs they performed and did not receive compensation from radio stations. These are just well-know examples; the same is true for many comtemporary performers as well. Most performing artists earn their livelihood from concerts, while songwriters earn most of their income from radio and television broadcasts of their songs.