Pandora paid a 250 million in royalties on an annual basis. Terrestrial radio paid ZERO last year and every year for the last 100 years in royalty payments to musicians. You need to understand the argument, musicians will make much, much more with this new legislation to level this playing field..
You guys are killing me. Pandora is trying to change the law because they are losing money hand over fist. Their business model doesn't work. Pandora didn't care about a level playing field when they started their business. They are a basketball team of 5 foot players screaming that the net should be lowered.
Back in September, BTIG analyst Richard Greenfield asserted that the Internet Radio Fairness Act is basically “crazy,” and simply is designed to fix Pandora’s flawed business model. “Pandora is effectively asking the government to intervene and reduce its cost structure, helping it remain a viable business because it knows its business model only works while running limited advertising,” he wrote at the time. “Why should the U.S. government allow musicians to be harmed simply to help Pandora and its investors generate enhanced returns?”
If terrestrial radio was paying the same rate as Pandora it would add over 4 billion annually in royalty payments to musicians. This was testified before Congress at the hearing this past Wed.. Did you listen ? Do you understand ? Your logic of zero royalty payments from terrestrial radio makes no sense. Your outrage should be directed at Terrestrial radio and all over the air radio broadcasters, they've paid musicians nothing for the last 100 years and your O.K. with getting nothing from them for the next 100 years. Pandora is your friend and will help all musicians make more money. Musicians will have a say in the drafting of this proposed legislation so all parties make a fair share..