Copyright License Fees Drive Pandora Out of Canada

An anonymous reader writes "Online streaming music services such as Pandora are abandoning plans to launch in Canada, claiming licensing fees are too high: 'These rates ... are astronomical,' Tim Westergren, founder of California-based Pandora, wrote in an email to The Canadian Press. The agency that collects music royalties in Canada on behalf of record companies and performing artists wants to charge web-based music sites that stream to mobile devices the greater of two figures: 45 per cent of the site's gross revenues in Canada or 7.5-tenths of a cent for every song streamed. Meanwhile, record labels are blaming the lack of online music services in Canada on piracy: 'Why would you spend a lot of money trying to build a service in Canada when Canadians take so much without paying for it?' said Graham Henderson, president of the Canadian Recording Industry Association, which represents major record labels."

Comments

But I do pay for it

[Anonymous Coward]

I buy blank CD-Rs, as do so many other people I know of. The cost of music is built in those. Once you have a stack of CD-Rs, you are no longer able to pirate music in Canada, as long as you only leech. It's the law. They made it. If they don't like it, tough.

What about indie labels?

[veganboyjosh]

What about labels who don't belong to the RIAA? It seems like this would be a great way for Pandora--especially Pandora, since they're pretty popular, and people know the name. Probably more so than any other free-to-stream radio--to stick it to the major labels. Just stream indie labels, those who don't belong to the CRIA, or labels who give their stuff away for free, or license it for free for this kind of thing.

Fools and their folly

[who's got my nicknam]

Mr. Henderson is an idiot, no offense to the intellectually challenged out there. He, like everyone else in the music industry, has blinders on, and is clueless as to what the people with the money (ie, the CUSTOMERS) want. I'd love to get Pandora here. It was brilliant while it lasted, and nothing else I've tried has been able to beat it. And here's the irony for CRIA and their ilk: since Pandora got shut off in Canada, I've simply gone back to downloading. Yes, it's still legal here, as long as we're paying the blank media levies we do. And Mr. Henderson can kiss my shiny metal ass, because I'll NEVER pay a cent for music from artists he 'represents'. Not even to a 'legal' streaming service. Am I sad Pandora has given up on Canada? Yes, because I loved their system. And no, because it really doesn't affect me anymore. iTunes has Genius, which is pretty damn good these days, and since I can happily download tunes till I'm out of drive space.

Re:Fools and their folly

[who's got my nicknam]

I'm reminded of a story (probably apocryphal) about the first McDonald's that was opened in Moscow. When the staff were being trained by the American reps, one of the managers put his hand up and asked, "Why do we have to be polite to the customers? WE have the hamburgers!"

45% of revenues is particularly weird

[Trepidity]

Unless you're running a cost-free operation, with no employees, servers, or bandwidth, gross revenues are not equal to profit. Say that you have a low-cost operation and 70% of gross revenues are profit, though. That means that the recording industry wants a licensing fee of 2/3 of your profits? And even 70% is pretty good; it's not uncommon to be running profit margins that are 45% of revenues or less, in which case the recording industry would actually be taking all of your profit, plus possibly more.

Figures.

[Drakkenmensch]

The agency that collects music royalties in Canada on behalf of record companies and performing artists wants to charge web-based music sites that stream to mobile devices the greater of two figures: 45 per cent of the site's gross revenues in Canada or 7.5-tenths of a cent for every song streamed. Meanwhile, record labels are blaming the lack of online music services in Canada on piracy: 'Why would you spend a lot of money trying to build a service in Canada when Canadians take so much without paying for it?

Now we all know who the real music pirates are.

Re:Hypocrisy

[commodore64_love]

the infringer has effectively already admitted owing at least $50 million and the full claim could exceed $6 billion. If the dollars don't shock, the target of the lawsuit undoubtedly will: The defendants in the case are Warner Music Canada, Sony BMG Music Canada, EMI Music Canada, and Universal Music Canada, the four primary members of CRIA.

The claims arise from a longstanding practice of the recording industry in Canada, described in the lawsuit as "exploit now, pay later if at all." It involves the use of works that are often included in compilation CDs (ie. the top dance tracks of 2009) or live recordings. The record labels create, press, distribute, and sell the CDs, but do not obtain the necessary copyright licences...... Over the years, the size of the pending list has grown dramatically, now containing over 300,000 songs. From Beyonce to Bruce Springsteen, the artists waiting for payment are far from obscure, as thousands of Canadian and foreign artists have seen their copyrights used without permission and payment.

Bastards.

How DARE they accuse us Joe Nobodies of being "pirates" while they aren't even paying their OWN employees, the singers and musicians? Fucking, fucking hypocritical bastards.