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The Equity Kicker

Nic Brisbourne’s view from London on venture capital and exploiting change in technology and media

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Pandora business model undermined by high royalty demands

Started by brisbourne · 6 months ago

Back in April I wrote that the royalty demands of the music majors risked undermining the viability of online music services. It seems that might be coming to pass - as reported on Techdirt, under the pressure of high royalty demands from the RIAA Pandora is thinking of shutting down.
If this c ... Continue reading »

3 comments

Meaghan Fitzgerald
10 months ago

I completely agree - I think we'll have to look for some flexibility on both sides, though. Ideally, I could just listen to any song I want whenever I want to. But, for some strange reason, the people who created the music want to earn something out of how much I enjoy their work. Go figure. Well, it'll be an interesting debate but at the moment the music industry holds most of the cards and I hope that there is a resolution that allows music fans to share and enjoy new music while the industry isn't entirely undermined and, gosh, wouldn't it be great if the actual artists got a piece of all of this.

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nic
10 months ago

Meaghan - artists obviously need to get paid, and I agree there has to be give and take on both sides. But I wouldn't agree that the music industry holds all the cards at the moment - if they did then 80-90% of digital music wouldn't be consumed illegally (or whatever the percentage is).

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Meaghan Fitzgerald
10 months ago

Sorry for the misunderstanding, I meant the music industry holds the cards over the artists, not the buyers. The artists themselves have very little room to negotiate under the contracts they've signed and when deals are made they tend to favour the industry rather than the musicians. I actually read an interesting article this morning about a band thanking listeners for piracy as it actually meant they got more popular.

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