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 mmforum |
Sadly, Pandora Is Still Going Bankrupt |
Lead | |
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Posts: 84 (07/08/09 16:05:19) Administrator |
The online radio business is doomed because the required per song payment to the record labels is too high to ever have a profitable business. Recently a
new set of rates were announced which press reports said "averted the royalty crisis". It's true the new rates are lower, but they are nowhere
close to allowing a viable web radio business.
Read the entire Michael's Minute here. |
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sbastian |
Are Royalty rates per play per person? | ||
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Posts: 1 (07/09/09 05:34:16) |
When I stream a song from Pandora or last FM, since I customized the channel that I am listening to, am I the only one hearing that stream? If so, does that
mean Pandora has to pay almost 10ยข for each song I listen to?
When I listen to the radio, I am only one of 50,000 people listening to the song being played. If I listen to satellite, it is the same thing; I'm just one individual of the larger audience. But with web media, because so much of it is 'on demand', the audience is smaller and targeted. It seems the only way these companies will be able to stay in business is to change the business model to have a larger audience for each play of a song. But then the RIAA will probably try to say that the royalty fees should have been 'per stream'. |
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brandsavant |
Trucking Wheat | ||
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Posts: 1 (07/09/09 18:01:37) |
Michael--couldn't agree with you more on this. Worse, the general commodification of online music pretty much sticks a knife in the Internet jukebox model
period. Streaming music providers are going to have to start focusing on what is going on between the records if they hope to differentiate themselves and make
an actual business out of online radio. I wrote more about this here:
www.brandsavant.com/157/congratulations-webcasters-now-what/
Last Edited By: brandsavant
07/09/09 18:03:51.
Edited 1 times.
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soundgard |
zdnet blog | ||
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Posts: 1 (07/10/09 05:14:01) |
i'm not sure what bearing this has against .. well, anything -- but take a look:
Pandora saved from the hangman's noose |
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radioguy |
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Posts: 1 (07/14/09 04:15:06) |
At this point it is hard to have much sympathy for the online broadcasters. Their strategy to deal with this situation has been flawed from the get-go and
their ability to make their case to those in power has been inept at best. They keep saying that they are going out of business and they keep on broadcasting;
and Pandora even raises another $35 million of investment capital. Sound Exchange can now claim that the internet radio folks have been crying wolf all along,
and they just might be correct.
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