Pandora And Internet Radio Fees

Robert Scoble posts about saving Pandora:

…Tom talking about how the business of Internet Radio is under pressure due to coming changes in how the music industry wants Internet Radio stations to pay for the distribution of music (basically the costs will triple, if the proposed changes go into effect). After we talk about the challenges that Pandora’s business faces if the fee changes go through Tom gives me a preview of their new Sprint/mobile service.

I got a pretty neat summary of the issue from Tom not too long after they recorded that interview (at least I think I got that timing right). I asked, how the new licensing fees affect pandora, Tom’s response was basically “we’re stuffed”. They can’t even drop the big record company music and stick to indy artists who’d love the opportunity to get that exposure because the licensing fee is mandatory.

It’s a real shame too, after meeting Tom it occurred to me that I should go back and use Pandora again while I was in the US – I’d tried it out quite some time ago and found it good. That was my only source of music while I was over there – it just kept finding interesting music that I liked. Now I can’t even go back to get the list of songs I’d given the thumbs up because Australian IPs are blocked, so I guess I won’t go buy that music now.

On the plus side, Tom seemed to have a fair bit of hope that political pressure could save them just because so many people like internet radio and are writing to their political representatives. So all you US people, please get writing… and Tom, any chance of adding my IP to the allowed list?? I promise I won’t blog about it.