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.

     John Simson defended the new royalty rulings made by the Copyright Royalty Board in his testimony on "Music and Radio in the 21st Century: Assuring Fair Rates and Rules Across Platforms.” Simson is a former performer, artist manager, music attorney, and presently an executive director of SoundExchange. SoundExchange is the single receiving agent of royalties paid by webcasters. He supports the increasing rates on the basic principle that "the people who create music must be paid." He defends SoundExchange's concern over the business of webcasters but argues that revenues are predicted to increase over the future. SoundExchange currently represents about 31,000 artists and 3,500 labels. Simson emphasizes the hard work put into music creation, and he scorns at those who believe music should be free or those who devalue it. Simson argues that webcasters are contradicting the decisions by the Copyright Royalty Board solely based on their prospective financial gains. He strongly believes that the new rates are fair and that no further negotiations are required.
     Simson’s testimony is important to my paper because it explains the royalty decision from the opposing point of view. Simson directly works for the company receiving the royalties, and so he represents SoundExchange’s opinions. Although Simson argues that fair rates must be ensured for the sake of the musicians, SoundExchange is also benefitting from the increasing rates. This testimony is important to my paper in order to prove that SoundExchange is biased in its strong royalty support.