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