Watched the entire hearing, very informative. The key issue in my opinion isn't so much about Pandora royalties as it is about the unfairness that exists under current law where terrestrial radio (AM/FM/Satellite) is exempt from paying ANY royalties to artists/recording companies. Very few AM/FM broadcasters "stream" music over the Internet because when they do, they must pay artists just like Pandora. They simply don't want to enter that streaming market because they will have to pay, so they broadcast as they have always done for FREE. Pandora is one of the few Internet "streamers" that has been able to survive. They pay a huge majority of ALL royalties paid to artists under current law. Broadcasters of AM/FM/Satellite pay very, very little, if any! Pandora CEO Kennedy just wants fairness amoung all radio (streamers, as well as AM/FM/Sat) to all pay their FAIR share to artists. Pandora shouldn't carry the load for ALL radio just because they agreed 5 years ago to the current royalty rates. In 2015 (a new contract comes in play) and they want a more fair and equitable contract that is shared with the rest of the broadcast industry. Not many companies want to try to compete with AM/FM/Sat. because they can't make enough profit when they pay the royalties that Pandora has to pay. The existing laws are simply outdated and unfair to the "streamers" like Pandora and Spotify. I fell Pandora's royalty rates need to be lowered and terrestrial radio needs to start paying artists the same rates as Pandora, or other streamers, when they broadcast songs. The debate will go on with more testimony in early 2013, but something needs to change to allow everyone to compete FAIRLY. Pandora should not have to carry the burden alone while AM/FM/Sat play any song as often as they like for FREE. The artists should be outraged with the current unfair law, not with Pandora. Hope this helps! DB
Are Short Sighted, greedy, & attack the wrong "providers". Traditional radio has "profited" for Free off the musicians, Not a word, but, satradio & internet radio R held up for huge Vigs by Royalty thugs. SatRadio was about Bankrupt because of high costs, now they pay 8% of Billions in Revenue - if the 'rates weren't changed the Artists would B getting 15% of Nothing = 0...Besides, Internet streamers & satradio Offer, listeners Countless genres that R not mainstream (like trad radio) - These Artists Now Get Paid, Not many "Punk Rock, 50's channels, Cinemagic" channels that R stand alone, In other words, All Artists get paid - not just the 'popular' band 2day. Traditional Radio does pay: the Writer and Producer of songs played On Radio & have short 'playlists", while SatRadio pays the writer, producer, & Band across a Countless spectrum of Genre's. As 4, Pandora's business model, free and paid commercial free is smart, I listen 2 Pandora & the commercials they do play R not annoying and countless and R Localized 2 the listener. I have been buying P since low 7's & have a 10 Price Target(pivot Point) until 'news' announcement, also, P is a prime BuyOut target for any Media conglomerate (incl. traditional radio), as the business 'stands' today. That said, Reward is 10 = Risk is 7 - Or i am Risking 1Dollar 2 make 2 Dollars -== Have an HgH Day - SatRadKid..
So many are distracted by the "Well, Pandora just has a bad business model" argument.
Fact is, they're all delivery systems for the music to get to listeners ears---whther it's a traditional over-rhe-air radio station, or satellite radio or a streaming service. WHY are there different rules based on the distributor? Number of ears is number of ears, period.
Could you imagine your local radio station having to pay a fee every time they played a song? That fee would be the royalty charge multiplied times the number of listeners the station was estimated to have at the time of day the song was played. That fee structure would destroy music radio, erasing a fantastic music promotional tool for the music industry.
So WHY are they trying to strangle Pandora? Could it be that they're just very short-sighted and don't want to settle for less on-the-spot money, completely losing sight of the BIG picture?
Pandora and other streaming services benefit the music industry, just as terrestrial radio has for decades. The music industry is being a penny-wise and a pound foolish.