Pandora: If We're Getting Taxed So Heavily By SoundExchange, Radio Should Be Too

from the strange-bedfellows dept

Well, this is rather disappointing. Just days after caving in and agreeing to new webcaster rates that will harm pretty much everyone, Pandora has gotten right into bed with the RIAA/SoundExchange in supporting the Performance Right Act (the RIAA Bailout Act) to extend a similar unnecessary tax on radio. Pandora's reasoning is no surprise: basically it's saying that if it has to pay such a silly tax to help promote musicians, it's unfair that radio stations get away without paying something similar. But, still, it's disappointing. Rather than looking at adding value to the overall market, Pandora has basically decided that it's "enemy's enemy is a friend" and is supporting such a law simply because it will harm radio stations. This makes me think significantly less of Pandora.

Filed Under: bailout, performance rights act, radio, webcasters
Companies: pandora, soundexchange


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  1. identicon
    you can hate me, 15 Jul 2009 @ 12:44pm

    Re: Re: Re: Re: Re: Re: What do you all do for a living?

    fair enough. i'm not an expert on both, but theories are just that, right? I know the scarcity of goods theory has been used (maybe not ad nasueum yet) to explain the demise of the record industy and promote P2P. i agree that record companies have made big mistakes along the way. But I'm not sure that the abundance of goods theory alone is enough to construct an environment where the "goods" in question here should only be able to capture value thru downstream efforts such as ticket sales and t-shirt sales for the lucky few. Why is it so economically unsound for a small band on an indie label to want to make a few bucks every few months because their song gets played on the radio or on Pandora? sure they are getting publicity, but you can't eat publicity.

    Didn't Starbucks apply the abundance of goods theory in putting a store in every building in America only to shut many of them down??

    you're right that this is a crazy system that 100% of economists would never construct in a million years. I don't defend the industry and how it operates, I jsut defend the rights of artists to own what they create and get compensated (if they choose to)when their creations are used by others for financial gain. And you cannot escape the reality that radio and webcasters use music to build their business. this is great, but shoudl they not pay for music in the same way they pay for the electricity to power their stations??

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