Pandora Wants Radio Stations To Pay For Music, Too

suraj.sun sends along an Ars writeup of the lobbying Pandora is doing now that it has secured its future, royalties-wise. Some might think it odd that Pandora is weighing in on the side of the record labels in their fight to get radio stations to pay more for the music they broadcast. "US radio stations don't pay performers and producers for the music they play, but the recording industry hopes to change that with a new performance rights bill in Congress. Webcaster Pandora has jumped into the fray on the side of the artists and labels, asking why radio gets a free ride when Pandora does not. ... With revenues from recorded music sales declining, rights-holders have turned their eyes in recent years to commercial US radio, which currently pays songwriters (but not performers or record labels)... With its own future secure for the next few years, Pandora is now turning its attention to the public performance debate here in the US, saying that the issue is a simple matter of fairness: why should webcasters have to pay more for music than traditional radio does? ... [But] the 'fairness' argument could clearly go either way. Radio might start paying a performance right; on the other hand, perhaps webcasters and satellite radio companies should simply stop paying one, relying on the old argument about promotion."

Comments

This was done in Australia

[dbIII]

This was done in Australia, and overnight the amount of Australian music broadcast dropped to close to zero. For a couple of years the government rattled sabres threatening to cancel broadcast licences and then eventually radio stations were charged for all content and not just Australian content. It really didn't matter if there were cases where there was no way the money charged could actually get back to the copyright holders because IT'S A SCAM. The money claimed on behalf of the local copyright holders that theoretically could get back to them does not and is absorbed in "administrative costs" for instance huge payouts to board members of the organisation running the scam. The British version of this is a prime example.

Radio Stations are already fighting this.

[Technician]

One of the radio stations I depend on for traffic reports is already fighting this. They run several advertisements predicting the free music you listen to is at risk of being eliminated by congress with new fees on the music they play. Call your congressman right away to stop this legislation that will end free music on radio.

The NAB, National Association of Broadcasters is leading the charge to oppose the bill.
http://www.latimes.com/business/la-fi-ct-radio3-2009jul03,0,6937549.story/