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Pandora Thinks Radio Stations Should Also Pay for Music Rights

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With revenues from music sales declining, many record labels have directed their attention to commercial US radio stations, who pay songwriters, not performers or record labels, for the songs that keep them moving.

And, it would appear, that these labels have Pandora Radio on their side. Pandora’s web model causes them to pay more for their music, which founder Tim Westergren sees as “fundamentally unfair both to Internet radio services like Pandora, which pay higher royalties than other forms of radio, and to musical artists, who receive no compensation at all when their music is played on AM/FM radio.”

Radio stations feel that they’re instead promoters of music, and their goal is to drive interest in artists. In turn, this will lead to more album and ticket sales, as well as more publicity opportunities. Though, one would have to wonder, how does this effect not apply to Pandora, and other forms of Internet radio?

Let us know what you think after the break.

 

Image Credit: Pandora

COMMENTS:8
COMMENTS
avatarlast.fm

which to last.fm it way better and it free, no commercial, and you can skip as much as you like

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avatarSure Pandora is worried about the artists...

I enjoy Pandora and the radio.  They are different in that with Pandora you select the artists you want to listen to, but on the radio you are stuck with whatever they play and you have commercials. 

Pandora's problem is the same as a lot of internet businesses, a questionable business model and multiple competitors.

I feel sorry for unestablished artists if the radio stations have to pay more.  Why play an unknown artist when you will keep more listeners by playing bands such as Metallica, Led Zeppelin, etc.

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avatarNothing would make me

Nothing would make me happier than to see some music industry exec actually do this.  Their business would plummet immediately--and maybe then we'd see real change with an industry that has demonstrated nothing but contempt for music artists, music fans, and every facet of the music industry.  The 'modern' music industry is unchanged from the business model used 50 years ago.

It's time for it to die.

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avatarunitended results

If radio stations had to pay a royalty for the music they play, they won't play it. Those staions that are already struggling to get by, will go under. 90% of all the songs in my library I originally heard on the radio, with this "play Tax" new and old stuff that I might want to go out and buy. How long will it be before my car is declared a mobile radio station and I who originally bought the CD from Wally-wolrd will now have to pay a royalty for playing music that can be heard beyond my ears?

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avataruh i think pandora has no

uh i think pandora has no say what so ever.   How long has the radio been broadcasting music?  And how long has pandora been streaming music?  Pandora can't come into the scene and say radio stations need to change.

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avatarThey have every right to.

They have every right to. Especially since most major radio stations broadcast there radio on internet streams too. 89xradio.com for example has an internet stream for there radio, and they even cut out the commercials for it!

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avatarI think...

that the radio stations should pay at the same rate that Pandora does. Maybe more especially where I live because it's nothing but a bunch of shit stations that play all that useless shit music from the top 100 charts all the time. CD Player ftw.

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avatari think they should pay the

i think they should pay the same. most radio stations i know of have it so you can listen to their station streaming over the internet anywhere in the world.

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