Tuesday, July 14, 2009

Would you pay $1 a month for Pandora? - Digits - WSJ

Pandora has finally emerged from a two-year battle with the Copyright Royalty Board over royalty payments for the artists of songs streamed online. And for the first time in its history, the popular streaming-music service will charge its heaviest listeners a fee for using it.

Webcasters reached an agreement last week with Sound Exchange, the nonprofit organization designated by the U.S. Copyright Office to negotiate on behalf of performing artists, which says that large webcasters like Pandora earning more than $125 million a year will pay a quarter of gross revenues in royalties, or about 0.09 cents per song, whichever is higher. The rate increases each year and will hit 0.14 cents per song in 2015...