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Companies like Pandora have not been willing to pay these higher rates however, especially when their competitors seemingly receive more favorable treatment.Īccording to Pandora’s assistant general counsel Christopher Harrison, music industry members have been allowed to withdraw from ASCAP the “right to license certain songs on what is essentially a case-by-case basis.” Pandora believes that this withdrawal violates the terms of ASCAP’s antitrust consent decree with the U.S. ASCAP, an organization composed of 460,000 “member-owners,” like Paul McCartney, Tom Petty, and Wilco, works primarily to ensure that artists and record labels are fairly compensated for the performance of their music. KXMZ-FM in Rapid City, South Dakota is Pandora’s new small-market “terrestrial” radio station, purchased to bypass the American Society of Composers, Authors and Publishers’ (ASCAP’s) allegedly discriminatory licensing and royalty rates.

Internet radio is the frequency of the future however, even internet radio giant Pandora is paying homage to the broadcast tradition. Pandora’s decision is viewed as a victory by musician advocacy organizations and will likely ensure that musicians and artists will not experience the eighty-five percent pay cut proposed by the Act.įor many people, the era of FM broadcasting has long past. Updated November 26, 2013: Likely due to its recent third quarter loss, Pandora representatives have stated that the company will end its lobbying efforts backing the Internet Radio Freedom Act and instead focus on influencing the Copyright Royalty Board for a change in royalty fees.

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