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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."
I've bought and paid for every single Nickleback album I have in my collection. Which is none.
Hi, I Boris. Hear fix bear, yes?
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.
"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.
Somebody please tell Mr. Henderson to take his head out of his ass. The fact, as he well knows, is that Canadians already pay hefty fees. We already pay for recorded music at a rate far in excess of the cost of distribution. Radio stations already pay royalty fees. And everyone already pays a surcharge on recording media and players so that we can be legally entitled to generate copies for personal use.
How did this media surcharge come about? Because Mr. Henderson's own organization, the CRIA, successfully lobbied for it! That's right. They insisted that Canadians must pay a surcharge in order to legally record music. And so we have been doing, ever since the late 1990s.
Mr. Henderson finds this convenient to forget, but the rest of us have not forgotten. Even those of us who do no music copying at all have already paid in full for entitlement to copy.
Parity: What to do when the weekend comes.
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.
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.
"Apparatus dignosco occultus, satis non supernus."
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.
10 PRINT CHR$(205.5+RND(1)); : GOTO 10
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.
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."
Let's not forget that the CRIA is facing a six billion dollar lawsuit over commercial copyright infringement of over three hundred thousand songs. Regardless of your position on piracy, these guys have no leg whatsoever to stand on. If they're going to go after individuals for noncommercially sharing music, first they'd better clean up their own mess.
That Anonymous Coward guy is pretty annoying. Can we have the government censor him or something?
Canada is a great country. We have lots of space, natural resources, and clean water. We have lots of land to work and play in. We have a banking system that didn't need massive bailouts. We are the number one supplier of Oil to the US, and supplied Uranium to create the first Atomic bomb. We are an energy superpower and the USA is addicted to our oil. Canada is only getting more powerful.
You are correct though that Canada is not a great contry, it is the greatest country in the world. Canada is safe, beautiful, clean, and rich.
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Money is tight for companies like Pandora, which is why they should go in to the hardware business
Wait... You want Pandora to build a box? Have you learned nothing from mythology?
When our name is on the back of your car, we're behind you all the way!