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09 Jan 2008
Internet radio site Pandora is to stop streaming music to UK users from 15 January after failing to reach agreement with record companies.
Founder Tim Westergren said in a letter to subscribers that all services outside the US will have to be shut down following a breakdown in negotiations.
Westergren, a former professional musician, blamed the unyielding stand of the record companies for his decision.
"Phonographic Performance Ltd (which represents the record labels) and the MCPS-PRS Alliance (which represents music publishers) have demanded per-track performance rates which are too high to allow ad-supported radio," he said.
"Hugely disappointing and depressing to us as it is, we have to block the last territory outside the US.
"The consequences of failing to support companies like Pandora that attempt to build a sustainable radio business for the future will be the continued explosion of piracy, the continued constriction of opportunities for working musicians, and a worsening drought of new music for fans."
Pandora, which is based on the Music Genome Project, plays bands that the user specifies but also suggests similar music that may appeal.
The service has been hit by royalty demands but is expanding into the mobile music sphere to increase revenues.
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Do you agree?
www.globalpandora.com still works
I recommend www.globalpandora.com for its simplicity of use. Rgds, Brian
Posted by: Brian 10 Jan 2008
Petitioning for change
Hey guys, We're attempting to fight back in the UK and a petition has been submitted at the Prime Minister's No.10 website (300 signatures and counting). We're hoping that it will gather enough support (and attention) to force the government to get involved or 'encourage' the record industry into working with webcasters like Pandora. The reality is that the whole licensing system for UK Internet radio needs another overhaul (ironically, it had one in 2006, but look what they come up with!). It needs to be allowed to become competitive with analogue and it needs to reflect the way in which contemporary music fans want to listen to music. Incidentally, Tim wasn't kidding when he wrote that the rates "are far too high to allow ad supported radio to operate". I interviewed Tim last year and he estimated that the MCPS-PRS alone was demanding 45 per cent of the gross revenue made by any UK operations. Personally, I hope common sense and economic sense prevails. The MCPS-PRS has just lost its clients a serious amount of royalty money. If I were them I'd be baying for blood.
Posted by: Chris Thornett 09 Jan 2008
Cutting off their nose to spite their face
It's bloody stupid. I am a Pandora UK user (not for much longer it seems)and have been introduced to several new artists as a result. I have also introduced my friends to Pandora. I assume after losing the 70 years copyright battle to the UK government, the music publishing and performance reps decided to show how macho they were by getting tough with small fry Pandora. But Pandora isn't Live Nation and doesn't have that sort of radio ad revenue. Why not cut them a deal? If I was a musician I would be pretty mad right now.
Posted by: Honeyrose 09 Jan 2008