Pandora's box of music royalties

Despite Pandora's value hitting $US4 billion after it floated, the company is yet to turn a profit. To solve this it needs to innovate, not attack artist royalty rates.

Leading US internet radio provider Pandora is positioning itself for a very public battle against musicians and songwriters. A fierce battle has been brewing ever since Pandora’s founder, Tim Westergren, blogged in early October that the company was planning to lobby US Congress to reduce royalty rates paid to artists and record labels for the use of their sound recordings.

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