PennTags Feed for /tag/radio+pandora

Tim Westergren Hearing on "The Future of Radio"

    Tim Westergren, founder and chief strategy officer of Pandora, spoke on behalf of the Digital Media Association (DiMa) at the hearing on “The Future of Radio.” His testimony first introduces Pandora and the Music Genome Project. He emphasizes that Pandora is unbiased in the song selection for its listeners. Through a completely democratic process, listeners can vote “thumbs up” or “thumbs down” if they like the song, and that respective song will gain or lose more exposure. Pandora plays songs from a wide range of artists with about 70% of the sound recordings belonging to artists not affiliated to major record labels. It equally reviews any CD that is delivered to them and selects songs solely based on their musical composition.
    Westergren’s statement focuses on the benefits of the internet radio technology. Internet radio offers more stations and diversity content than broadcast, satellite, and FM radio. Virtually any artist or song can be found on the internet. Westergren reports that in a study “Pandora listeners are three to five times more likely to have purchased music in the last 90 days than the average American.” He emphasizes that internet radio is the best way to promote artists and music.
    On the issue of royalty rates, Westergren highlights that internet radio has the smallest of all radio revenues yet it pays the highest royalties. The increased rates are not economically sustainable, and unless a new resolution is made with SoundExchange, Pandora and other internet radio companies will immediately shut down. Pandora and DiMa have supported the SaveNetRadio campaign, which has urged support for the Internet Radio Equality Act. Westergren provides words from listeners and musicians who are extremely grateful to internet radio. In his own words, Westergren states, “It is my hope, indeed the reason I started this company, that we are at the beginning of the development of a musicians’ middle class, as radio services like Pandora allow musicians to find a fan base and maintain a steady career making music, which is a real alternative to the major-label system that makes you an enormous star or leaves you unemployed.”
    Westergren’s statement is important for my paper, since my argument completely supports his ideas and beliefs. The internet radio is extremely beneficial to the public and I agree that it is the best way to promote an artist’s work. If the royalty rates are increased, this will put a halt to the promotion of cultural diversity. Although not all listeners end up purchasing CDs or songs, the word-of-mouth advertisement for performers is tremendous, this benefits them in the long run. Westergren’s ideas and beliefs are fair and justified. He is not completely against the payment of royalties, but he demands a fair standard to be used for the rate determination, which is what my paper will discuss.

FAQ: Net radio's mixed signals - CNET News

Pandora and Internet Radio Royalties

Thesis: The Copyright Royalty Board's decision to increase royalty fees for online music streaming is unfair and will lead to popular internet radio stations, such as Pandora, to go out of business. Paper proposal: I would like to research and write a paper on Pandora in the context of online music streaming. The paper would focus more on the Pandora case, but I would also discuss the copyright issues concerning internet radio stations. My research would include Pandora's background, its terms of use, and its method of dealing with copyright concerns. I would also research the Copyright Royalty Board and other internet radio stations. This research would allow me to analyze and argue that increasing internet radio fees are putting internet radio companies, such as Pandora, in risk of going out of business. The goal of my paper would be to discuss the fairness of the royalty fees for internet radio stations and use Pandora as the main example and focus of this argument.

Giant of Internet Radio Nears Its 'Last Stand' - washingtonpost.com

    Pandora has become one of the nation’s most popular internet radio stations. It has about one million listeners daily and 40,000 new customers a day. Pandora has made it to the top ten most popular applications for Apple’s iphone. Listeners can create their own stations according to their musical tastes. All of Pandora’s success, however, may soon reach an end with the increasing royalty rates.
    Royalty fees are paid to a single agent SoundExchange, Inc. The organization represents performers and record companies, and it supports the higher rates on the basis that musicians deserve a larger fraction of internet radio profits. “Our artists and copyright owners deserve to be fairly compensated for the blood and sweat that forms the core product of these businesses,” said Mike Huppe, general counsel for SoundExchange. The organization also believes that internet radio has not done enough to profit from streaming music.
    Some musicians defend Pandora and other internet radio stations on the other hand. Webcasters argue that internet radio offers a larger range of music than traditional radio and also promotes independent musicians. While traditional radio does not pay royalties and satellite radio pay 6-7% of their revenue, webcasters must pay per song and per listener. With the new royalty decision doubling the per performance rates, Pandora and other webcasters may go out of business. Tim Westergren, founder of Pandora, predicts that royalty fees will amount to $17 million this year, which is 70% of the projected revenue. “We’re funded by venture capital,” [Westergren] said, “They’re not going to chase a company whose business model has been broken. So if it doesn’t feel like it’s headed toward a solution, we’re done.”
    This newspaper article is important for my paper because it portrays the trememdous effect the new royalties will have on Pandora. Westergren repeatedly states that the company will go out of business, and this is important for my paper. Performers will not be paid more for their work if there is no internet radio station that will be in business to pay them. In order to ensure a fair royalty rate, the company must not be threatened to close down. My paper defends another model for determining the royalties and argues against the latest copyright ruling on the royalty rates. This article is important because it not only demonstrates the copyright ruling from Pandora's point of view but also from SoundExchange's perspective.