Pandora, the ad-supported internet radio service that builds stations off of your personal taste, may be shutting down in the near future. Due to high royalty costs from the labels, that may be their only option. According to the Washington Post, Pandora founder Tim Westergren doesn’t seem too confident the company will survive.
“We’re approaching a pull-the-plug kind of decision…This is like a last stand for webcasting.”
The Post mentioned that a whopping 70% of Pandora’s $25 Million in revenue this year will go to royalty fees. Representative Howard L. Berman, a Democrat from California, is attempting to work up a deal between Pandora and SoundExchange, the organization that represents artists and labels. Lets just hope Berman can get through to them… or we may have to go back to hating the RIAA.
I’m deeply saddened by the fact they may go out of business… and I’m sure their million other users are as well. So what do you think Pandora should do? Should they stick it to the RIAA and start playing all indie bands? Is going out of business really their only option? Let us know your thoughts in the comments below.