My colleague Juliana Gruenwald on Tech Daily Dose has the details on a new coalition formed by Internet radio provider Pandora in its effort to push for passage of a pair of House and Senate bills. The bills would direct the Copyright Royalty Board to set Internet radio royalty rates using the same standard it applies to satellite radio and cable radio rates.
Pandora and the recording industry have fought together against big broadcasters in the past. Not this time. Broadcasters such as Clear Channel have joined Pandora's coalition, while the recording industry is actively working to defeat the bills.
From Gruenwald's story:
Internet radio providers such as Pandora and traditional radio stations that simulcast music over the Internet complain that they pay much higher royalty rates than cable and satellite music providers. Broadcasters, however, currently pay nothing for playing a performer's music on a traditional terrestrial radio station. Pandora has joined the music industry in complaining about this in the past but now says it does not want the long-running battle over the issue to derail its efforts to lower the rates Internet radio providers pay.It looks like Pandora has indeed grown up, Washington-style, by picking the easier battle to win and signing on some powerful allies in the process.
"Legislation that establishes a fair royalty rate setting-standard for Internet radio will drive investment in webcasting, which ultimately offers greater opportunities and more revenue for working artists," Pandora founder and chief strategy officer Tim Westergren said in a statement. "When the digital music sector is allowed to grow and innovate, everybody wins."
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