Pandora Switches Course In Its Royalty Fight With The Music Industry
Pandora Switches Course In Its Royalty Fight With The
Music Industry
NOV 26, 2013 - 1 HOUR AGO By Michelle Quinn MICHELLE QUINN
Faced with a formidable new competitor in Apple’s iTunes
Radio, Pandora, the Oakland online radio company, has switched course in its
lengthy battle with the music industry over how much it pays in royalties.
The company is giving up pursuing federal legislation,
according to reports this week. The legislation, the Internet Radio Fairness
Act, would reduce rates webcasters like Pandora pay to rights holders. The
bill’s sponsor, Rep. Jason Chaffetz, (R-Utah), hasn’t said what he will do now
that the bill’s biggest booster has apparently abandoned the effort.
Instead of going to Congress, Pandora is expected to focus
on the next review by the Copyright Royalty Board, which sets the rates webcasters pay,
according to Billboard. The publication also quotes a Pandora representative
saying that the firm may negotiate directly with labels. Apple did that with
iTunes Radio, but Apple doesn’t have to worry about revenue.
Lobbyists who represent artists and labels cheered the
development, says The Hill. But it’s
unclear whether Pandora can repair its relationships with the industry enough
to actually negotiate with music executives, writes Hypebot.
Given the clear antagonism between major labels and
Pandora, they may eventually face having to negotiate directly with companies
that might be happier if they die.
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