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Pandora Can't Make Money, May Pull the Plug

Aug 20, 2008, 05:04 (3 Talkback[s])
(Other stories by David Chartier)

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"SoundExchange offered a potential reprieve from the royalty hikes, but that turned out to be a red herring to sneak DRM onto web radio. In the end, SoundExchange was able to initiate a massive (and retroactive) royalty hike on Internet radio stations, imposing per-user fees for each song. Adding insult to injury, the royalties on Internet radio will double for big stations by 2010, to an estimated 2.91 cents per hour per listener—far higher than the 1.6 cents that satellite stations would pay."

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