Perhaps Pandora Must Be Our Sacrificial Lamb

Message Board to Discuss Business Issues in the Social Networking Industry

Perhaps Pandora Must Be Our Sacrificial Lamb

Postby snwmark » Mon Aug 18, 2008 7:43 pm

TECH CRUNCH -- Aug 16 -- Pandora would shut down rather than continue to pay exorbitant fees to play music to their listeners. Radio stations pay different rates depending on how they broadcast music. Terrestrial stations (normal FM/AM stations) pay nothing. Satellite stations pay approximately 1.6 cents per hour per listener. By 2010, Pandora and other Internet radio stations, which have few lobbying resources, must pay 2.91 cents. Pandora says they\'re already paying 70% of their $25m in yearly revenues in royalty fees, and it is driving them out of business. Other Internet radio stations are even worse off.

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