The artists penned an open letter, writing, “We are big fans of Pandora. That’s why we helped give the company a discount on rates for the past decade. Pandora is now enjoying phenomenal success as a Wall Street company. Skyrocketing growth in revenues and users. At the same time, the music community is just now beginning to gain a footing in this new digital world. Pandora’s principal asset is the music. Why is the company asking Congress once again to step in and gut the royalties that thousands of musicians rely upon? That’s not fair and that’s not how partners work together.”
Pandora responded, “Today, the discrimination is extraordinary. In 2011, Pandora paid over 50 percent of revenues in performance royalties, while SiriusXM paid less than 10 percent. Internet radio brings millions of listeners back to music, plays the songs of tens of thousands of promising working artists, enabling them to build their audience while receiving fair compensation.”
Who do you think is right? Is there an obvious winner here or is this going to be a difficult choice for Congress to make?