Is Pandora Radio Out of Time?
We've mentioned a few million times in the past about how much we love Pandora radio but even our love may not be enough to keep Pandora afloat. For the last few years, internet radio has been on a pretty shaky ground due to the ridiculous licensing fees but it looked like Pandora might make it through. Now according to TheStandard.com:
Pandora, the excellent music recommendation and streaming service, may be closing its doors in the near future over royalty fees paid to SoundExchange, an organization that represents artists and record companies in royalty negotiations.
Founder Tim Westergren told the Washington Post the company was "approaching a pull-the-plug kind of decision." Pandora will pay 70 roughly of its projected revenue of $25 million in music royalties, a level which Westergren says is unsustainable. "We're funded by venture capital. They're not going to chase a company whose business model has been broken," he says.
There is some hope that a last minute deal can be negotiated by Congressman Howard L. Berman (D-CA) but we're not real hopeful. So if you're a Pandora radio fan, you may want ot lock yourself in a room and lsiten until Pandora goes silent.
At TheStandard.com
Pandora's Website
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Posted by William Hungerford at August 18, 2008 9:41 AM
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