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Posted by on Nov 7, 2012 in Internet |

Pandora association sues receivable composers for their music too

Pandora association sues receivable composers for their music too

The Internet service today filed a lawsuit against the Society of Composers, Authors and Publishers of America (ASCAP), because it believes that it is charging a very high royalty per play songs.

The company expects that the Court impose fees “reasonable” for the right to emit songs via Pandora. The organization has 435,000 members and represents all the songs they created.

Last month, CEO of Pandora, Tim Westergren, said in the company blog that companies like Pandora pay up to $ 3 million in annual fees to the great artists, while traditional radio stations pay much less. “Because Pandora represents only 6.53% of radio listening in the U.S., it seems fundamentally unfair that other forms of radio having a much larger pay much less to the artists,” said Westergren. If the model is maintained well, Pandora could not be maintained.

“Pandora was founded on the principle of supporting artists and we are proud to pay performance fees. We believe that artists can and should win even more. But these revenues are to a single company. License Fees predatory orchestrated through the years by the RIAA and their lobbyists in Washington have devastated Internet radio, “said Westergren.

The problem is not new, and Pandora has argued on the issue at least since 2008, insisting that “stop discrimination against internet radio and permit it to operate under the same conditions, with the same rules as other forms of digital radio “. In the U.S. Congress there is a bill on the subject was admitted in September.

The National Music Publishers’ Association (NMPA) reacted Pandora describing as “scandalous”, indicating that the company pays a “nominal” to the musicians. “The file suit while the founders of Pandora are pocketing millions for themselves is an insult,” said David Israelite, president and CEO of the NMPA.

Actually, in the first half of 2012 Pandora reported losses for $ 25.6 million.

Links:
Pandora Media sues ASCAP songwriter seeking lower fees (Bloomberg)
Pandora and Artist payments (Pandora)

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