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Kennedy Headed to Washington


As we reported yesterday, more royalty hearings take place on The Hill today. Pandora has been one of the hard driving forces for changing the way the numbers are calculated. Pandora CEO Joseph Kennedy will testify today and he will tell the committee that The Internet Radio Fairness Act "corrects two extraordinary inequities in the Copyright Act.

Kennedy is expected to say the rate-setting standard that applies only to Internet radio – not to cable radio or satellite radio, or to record companies when they obtain licenses for musical works from songwriters is unfair. And, the process that deviates in many important ways from how our Federal court system works, one that actually prevents royalty judges from reviewing all relevant evidence when determining Internet radio rates is unfair.

In 2012 Pandora will account for only a small percentage of U.S. radio listening. The company will pay SoundExchange almost a quarter of a billion dollars—more than 50% of its revenue. Satellite radio pays 7.5% of its their revenue.

(11/30/2012 12:01:02 AM)
YouTube music has not only settled all major issues with the big labels to their mutual advantage but has opened up their API to enable startups like to offer superior services that integrate the best of Pandora, Rhapsody,, etc. without commercial interruption or registration. Even if Pandora gets their way YouTube is a behemoth they will have to reckon with sooner or later.

- lola grace

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