RIAA May Get Its Wish: Pandora Leaning Towards Shutting Down Over Webcasting Royalties
from the how-the-RIAA-killed-internet-radio dept
Last year, we noted that the new webcasting royalty rates pushed through by the RIAA appeared designed specifically to kill internet radio. These royalties are different and much higher than things like traditional and satellite radio, despite being much more fragile at this point in their development. As if to prove the point, Pandora, one of the largest and most successful online streaming radio providers is now saying that it's going to have to shut down if the royalty rates aren't changed shortly.This is exactly what the RIAA wants, by the way. Even if services like Pandora introduce people to tons of music (personally, I've bought a ton of music I found on Pandora), much of that music is not from an RIAA-member label. The RIAA knew exactly what it was doing in pushing these higher rates: it was killing off alternative routes to promoting non-RIAA music. The RIAA labels have always thrived off a very limited distribution and promotion channel. After all, distribution and promotion are where record labels really make their money. Competing methods of distribution and promotion are threats to be killed off -- and the RIAA may have succeeded here (with Congress' and the courts' help, of course).
Oh, and don't think the solution is to only play non-RIAA music. The RIAA's spinoff, SoundExchange, gets to collect money on non-RIAA music as well. Oh yeah, it gets better too: if SoundExchange can't find the musicians to pay, it gets to keep the money. That's why it has a history of not looking very hard for musicians in order to pay them.
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Filed Under: royalties, streaming music
Companies: pandora, riaa, sound exchange
Reader Comments
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screw the music industry
If they kill it I'll do my part to drive the industry into the ground for good.
I'll make sure I never legally purchase another piece of music again.
I'll also do my best to encourage everyone I know to do the same.
It will be unfortunate for the musicians, but RIAA and their peers need to die a cold hard death so this industry can have a new start.
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Re: screw the music industry
There's no reason musicians need to suffer as the lables crash.
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Re: Re: screw the music industry
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Re: Re: Re: screw the music industry
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Re: Re: Re: Re: screw the music industry
And sorry if the artists suffer collateral damage, but if they don't like it, maybe they should find a different organization to align with. I'm not going to waste my time trying to make the distinction between the RIAA and the artists. I'm also not going to try to distinguish between which are RIAA artists and which aren't, because the ones that aren't are covered by SoundExchange, which I find just as revolting as the RIAA. So the only option left, to avoid supporting organizations that I find immoral and ethically repugnant, is to simply not buy music at all. I might pick up some stuff at a garage sale or on eBay, but I won't buy any music from any retailer on this planet.
But I will happily download whatever I that I like.
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Re: Re: screw the music industry
Don't know about that, but eMusic seems to be a good place to find music from independent artists at a reasonable price.
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Re: Re: Re: screw the music industry
RIAA Rader will tell you if an artist/compilation etc is linked to the RIAA.
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Re: Re: screw the music industry
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Re: Re: screw the music industry
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Re: Re: screw the music industry
http://www.reverbnation.com/
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Re: screw the music industry
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Re: screw the music industry
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Would the RIAA disappear in a disjointed puff of asinine idiocracy?
Or would new heads appear?
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SoundExchange
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Unbelievable
People do currently PAY OVER $15/MONTH to services that allow them to download pirated music. If the recording indusry would put their greed aside, they could be making this revenue instead of it going to support illegal music downloads. RIAA, wake up.
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As a non-RIAA artist
I actually give it out free for promotional purposes...and the RIAA gets to collect on it. The world is a shitty place for independents sometimes.
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Re: As a non-RIAA artist
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Re: As a non-RIAA artist
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Re: Re: As a non-RIAA artist
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hearbreaking
RIAA has done so much to stifle creativity and innovation in music.
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act now
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Web Radio vs Web Site
Wikipedia defines it as "a streaming medium that presents listeners with a continuous "stream" of audio over which they have no control, much like traditional broadcast media; in this respect, it is distinct from "on-demand" file serving"
So if Pandora offered some sort of audience interaction, maybe Last-FM style track skipping, would it be off the hook?
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here's hoping...
Musicians please avoid RIAA labels! Promote your music through free internet services and kill off the RIAA parasites.
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Grr
Since congress has been bought out in this regard, ALL internet radio should boycott the paying of ANYTHING for non-RIAA member's songs. Why pay royalties on something to somebody who has absolutely less than nothing to do with it?
If they all did it in unison, maybe congress would wake up, just a tiny, if we are lucky. I know I am hoping and asking for too much, but sometimes the people have to stand up for whats right when its pushed too far.
If they all banded together, the industry could try to sue, and the officials could go after them. Then let us see the outcry of the public about how stupid these laws are once tons of attention is drawn to them beyond just our tech savvy crew.
I know, I am way too optimistic sometimes.
If Pandora goes down, my thoughts are perfectly in line with the first poster here. I will do everything I can to see the RIAA die as soon as possible, including marketing against them to my friends who buy lots of music.
I have found lots of good music on Pandora. Yes, I do not buy it all, but I do buy some. And that some would have never been found without Pandora I am sure simply because it is not RIAA tripe.
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Pandora is silly
Pandora needs to go back to the drawing board and think of a new business plan. Yes, you just got kick in the nuts. Don't just cry about it.
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Re: Pandora is silly
We can only assume you are one of the soulless RIAA shills.
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Re: Re: Pandora is silly
If there are so many loyal supporter out there, are they willing to pay a small subscription fee? Maybe Pandora should start generating content, self generated content is a fixed cost, unlike music where you have to pay more royalty for more users and more often its play.
RIAA are extortionists. I hate them probably as much as you do. But the RIAA is Pandora's only supplier and internet radio is small business to the RIAA. I just think Pandora needs to do something at their end before crying to the public about it.
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Re: Re: Re: Pandora is silly
Please explain why Internet radio is any different than satellite or terestrial radio? Why should web-based radio pay more for the same thing?
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Re: Re: Re: Re: Pandora is silly
There is no reason. RIAA is not going to play nice. Pandora needs to deal with it. That's business.
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Re: Re: Re: Re: Re: Pandora is silly
TBC
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Re: Re: Re: Re: Re: Pandora is silly
TBC
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Re: Re: Re: Re: Re: Re: Pandora is silly
"Well Brian, looks like you're not doing any business"
TBC
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Re: Re: Re: Re: Re: Pandora is silly
On the other hand, people are having their say about it too. That's free speech. Deal with it.
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Re: Re: Re: Pandora is silly
You miss the point. All songs played require a fee to SoundExchange. According to the law, even if Pandora DID generate their own content they would STILL have to pay up. All music that streams must have royalties that go to SoundExchange.
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savenetradio.org
This site is dedicated to preventing the death of internet radio. You can help by calling your Senators and Representative and telling them how much bullshit this is, and how much internet radio means to you.
If you go to that site, they'll make it easy and GIVE YOU THE PHONE NUMBER of the people that need to hear you.
If you don't make yourself heard and do something about this, then you need to stop complaining because you apparenty DON'T care enough.
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Re: savenetradio.org
You better send them lots of money first if you want them to care.
Like I said, if you really care and want to be heard you better send them lots of money. Oh, and never vote for a Republican or a Democrat. Too many members of both those parties support whoever gives them the most money (RIAA in this case).
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it is classic governmental/corporate corruption that only serves themselves at the expense of everyone else.
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Boycott?
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cry cry
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The real problem is the compulsory rate.
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Can't we just ignore the RIAA?
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Re: Can't we just ignore the RIAA?
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Hoist them with thier own petard.
Here's an idea for a lawsuit foundation case:
Set up a streaming channel that just loops a single track of very bad (or good if you have it in you) music that you compose and record about the extortion racket that SoundExchange truly is and how you the artist specifically denies SoundEx the right to represent this performance in any manner. The verbal content of the song is a legal notice of rights restriction.
When SoundExchange comes to enforce the compulsory license collection, tell them to pound sand and copy the EFF.
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Boycott the RIAA - website
http://www.boycott-riaa.com/
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Typical RIAA BS
Eventually Pandora will probably die, leaving a market niche that will be filled by an RIAA approved entity whose profits will be going to line the same ol' pockets. Oh well, life isn't fair. Hopefully SoundExchange will do a decent implementation.
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Not 1 cent!
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Scripts to find non-RIAA artists on Amazon.com
http://www.riaaradar.com/
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Yeah! Not 1 cent! I agree!
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Track their litigation here
http://recordingindustryvspeople.blogspot.com/
In a nutshell, WE need to stop them. Nobody else can or will do it.
How?
STOP BUYING RIAA MUSIC. Let's bury them in their own stupidity.
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A real travesty
Remember this old adage? Maybe I'm showing my age but it's exactly what the RIAA is doing and it is a bog load of crap:
Work the system and the system will work for you. Good work RIAA, YOU'VE GOT IT DOWN TO A SCIENCE...
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Need to get China Involved
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Change the market to shut out RIAA
The real shame of all this is that it was allowed to happen in the first place. Our polititians are unquestionalbly corrupt if they support the RIAA's rhetoric. The government is supposed to help the people, not help companies kick other companies in the head, or help them to pick our pockets.
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Re: Change the market to shut out RIAA
Not in America, the Government is to create as conducive an environment as possible for Business, thats it. The hope then is that business will take of the people . . .
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Correct me if I'm wrong
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Subscribe to Pandora
By the way, I'm not from Pandora or associated with them in any way. Just thight I'd make it clear.
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drive soundexchange to bankruptcy?
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The RIAA is illegal!
Essentially forcing all music to be paid for, irregardless of whether or not the copyright owners want the music to be paid for or not.
The only solution for this is a two-fold solution. First of all for everyone everywhere to only listen to non-RIAA music and secondly for the organizations and individuals that play said music to refuse to give a dime to SoundExchange. If enough of us refuse, which is very easy not only morally and ethically, but also would be easy to win legally in the long run (no jury would side against you on this).
Refuse to pay the RIAA!
The RIAA are nothing but a bunch of wallet-raping terrorists.
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Re: The RIAA is illegal!
If they get smacked down with large fines, they will just go out of business anyways, so it is not like they would be losing all that much compared to what they stand to lose right now (depending on what type of corporation it is set up as, some setups state that for a companies actions, you cannot go after the owner's assets).
Realistically, what have they got to lose? A couple of servers that they could smash to bits before handing them over?
Sometimes what is law is not what is right. And sometimes it is better to stand up.
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Its all they have . . .
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-- Rebecca Riots
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Pandora radio is not available in my country - Portugal.
I have found tv243.com a great alternative for it.
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