How will the new rate affect Pandora?
It’s ruinous. (Royalty payments) are (already) by far our biggest cost. And they would triple. Q: Shouldn’t artists get paid a fair rate? A: We completely agree. But if it doesn’t make sense economically, it just wrecks the industry. Q: The bill for the first price increase is scheduled to arrive July 15. If something isn’t done by then, will Pandora shut down? A: If it looks like there’s a solution in sight, then we can (temporarily) afford the bill. But if it’s not heading in the right direction, there’s definitely a point where we shut the doors. Q: What is Pandora doing in the meantime? A: If anyone asks what they can do, I tell them to call and get their congressmen to support the bill. Four hundred thousand people called in the first four days. Q: If fee hikes are so harmful, why have record companies been pushing for them? A: I think it’s about control. If these rates stick, it will wipe out this version of Internet radio. This whole thing is just a big mistake. Q: Hasn’t Pandor
