Pandora has become the poster child in the fight over royalties for music streamed over the Internet. As the debate heats up in advance of a House Judiciary hearing at the end of the month, more than 125 musicians and singers signed an open letter that will be published in the Nov.
Internet radio services like Pandora may be popular, but they haven't been profitable, largely because of crippling music royalties. Hoping to turn around a lousy business model, Pandora and Clear Channel—along with 11 other Internet radio companies and trade associations—have formed the Internet Radio Fairness Coalition.
A House hearing on the future of audio kicked the rock over on two old issues in the radio business exacerbated by the stunning growth of digital radio services like Pandora. Should over-the-air radio stations be forced to fork over performance fees that are paid by radio stations and services online and on mobile platforms? Should there be on-air radio chips in cellphones?