42244 5 3 econsultancy_xml <p>Founder Tim Westergren emailed Pandora's UK listeners to explain that the move had rendered its non-subscription, ad-supported model unworkable. </p> <p>He said:</p> <blockquote> <p> <em>"We have been told to sign these totally unworkable license rates or switch off, non-negotiable...so that is what we are doing." </em> </p> <p> <em>"Lest you think this is solely an international problem, you should know that we are also fighting for our survival here in the US, in the face of a crushing increase in web radio royalty rates, which if left unchanged, would mean the end of Pandora."</em> </p> </blockquote> <p>Pandora, as with other web radio services, has been struggling to survive after the Recording Industry Association of America (RIAA) decided to <a href="/blog/900-riaa-plots-royalty-fee-hikes">raise royalty fees</a> for internet broadcasters. </p> <p>Under the <a href="/blog/1062-us-internet-radio-under-threat-from-new-ruling">RIAA's scheme</a>, they are forced to pay a flat fee per song, with the charges rising every year up to 2010.</p> <p> <a href="http://www.pandora.com/">Pandora</a> closed all of its non-US operations after the fee hike, but was hoping to keep the service alive in the UK. </p> <p>This may spell the end of many free, ad-supported internet radio services, as many will be forced to either introduce subscription charges or cease trading if the recording industry continues to insist on higher royalty rates. </p> <p> <strong>Related stories:</strong> <br /> <a href="/blog/1241-internet-radio-stations-offered-reprieve">Internet radio stations offered 'reprieve'</a> <br /> <a href="/blog/485-interview-with-martin-stiksel-of-last-fm">Interview with Martin Stiksel of last.fm </a> </p> <FormattedContent xmlns="http://www.e-consultancy.com/schema/formattedContent/"> <Paragraph>Founder Tim Westergren emailed Pandora's UK listeners to explain that the move had rendered its non-subscription, ad-supported model unworkable. </Paragraph> <Paragraph>He said:</Paragraph> <Block> <Paragraph> <Quote>"We have been told to sign these totally unworkable license rates or switch off, non-negotiable...so that is what we are doing." </Quote> </Paragraph> <Paragraph> <Quote>"Lest you think this is solely an international problem, you should know that we are also fighting for our survival here in the US, in the face of a crushing increase in web radio royalty rates, which if left unchanged, would mean the end of Pandora."</Quote> </Paragraph> </Block> <Paragraph>Pandora, as with other web radio services, has been struggling to survive after the Recording Industry Association of America (RIAA) decided to <Link URL="/blog/900-riaa-plots-royalty-fee-hikes" Window="Self">raise royalty fees</Link> for internet broadcasters. </Paragraph> <Paragraph>Under the <Link URL="/blog/1062-us-internet-radio-under-threat-from-new-ruling" Window="Self">RIAA's scheme</Link>, they are forced to pay a flat fee per song, with the charges rising every year up to 2010.</Paragraph> <Paragraph> <Link URL="http://www.pandora.com/" Window="Self">Pandora</Link> closed all of its non-US operations after the fee hike, but was hoping to keep the service alive in the UK. </Paragraph> <Paragraph>This may spell the end of many free, ad-supported internet radio services, as many will be forced to either introduce subscription charges or cease trading if the recording industry continues to insist on higher royalty rates. </Paragraph> <Paragraph> <Emphasis>Related stories:</Emphasis> <LineBreak /> <Link URL="/blog/1241-internet-radio-stations-offered-reprieve" Window="Self">Internet radio stations offered 'reprieve'</Link> <LineBreak /> <Link URL="/blog/485-interview-with-martin-stiksel-of-last-fm" Window="Self">Interview with Martin Stiksel of last.fm </Link> </Paragraph> </FormattedContent> 2008-01-08T11:48:00+00:00 5 1 econsultancy_xml <p> <strong>Music recommendation service Pandora says it is set to block UK users from 15th January as it is unable to afford new royalty rates. </strong> </p> <p>The firm says that royalty collection agencies PPL and the MCPS/PRS alliance have demanded excessive fees. </p> <FormattedContent xmlns="http://www.e-consultancy.com/schema/formattedContent/"> <Paragraph> <Emphasis>Music recommendation service Pandora says it is set to block UK users from 15th January as it is unable to afford new royalty rates. </Emphasis> </Paragraph> <Paragraph>The firm says that royalty collection agencies PPL and the MCPS/PRS alliance have demanded excessive fees. </Paragraph> </FormattedContent> false 2052 364810 Pandora forced to close in the UK false 2008-01-08T14:43:00+00:00 pandora-forced-to-close-in-the-uk 2009-04-30T04:14:05+01:00 2009-04-30T04:14:05+01:00 743