Pandora Agreement Saves Internet Radio

Illustration for article titled Pandora Agreement Saves Internet Radio

Fans of internet radio can breathe a little easier today now that Pandora has reached an agreement with the music industry that puts it on secure ground for the foreseeable future.

Advertisement

Excessive royalty rates were the main reason sites like Pandora hovered near the brink of collapse last year, but this agreement will see a 40-50% reduction in those fees through 2015. However, Pandora will have to give up a 25% share of its revenue as part of the deal. Because these fees are higher than those of traditional radio, Pandora will also have to impose 40 hour limits on users of the free version. Should you surpass that number, you will be required to pay a $.99 fee to continue listening through the end of the month. Users of the paid version will not see a service change.

All in all, it seems like a pretty fair compromise for the listeners, but the truth is that the internet is the future of radio—and it appears that the music industry is going to screw them while they can. [TechCrunch]

DISCUSSION

I've never been able to figure out why content owners always try so hard to squash popular new methods of distribution just because they're different. The music industry never wants anybody to listen to their music, Fox is still running around trying to make Hulu suck, and the movie industry spends every minute of every day making sure that the experience of legitimately buying and watching movies is as big of a pain in the ass as possible.

Let people use this crap as they want to, companies become successful because they go out of their way to make sure their audience enjoys their product. How can you possibly expect to stay in business long-term by punishing the people using your product?