Three cheers for musicians defense against Pandora’s Congressional lobbying efforts to reduce royalty rates that it pays to musicians. Currently Pandora pays a fraction of a penny to musicians each time a song is played on its internet radio service. …Pandora wants to make more money (don’t we all)… but taking a bigger cut from musicians is low. In protest of Pandora’s proposal, Rihanna, George Clinton, Billy Joel, Bonnie Raitt, The Doors, Katy Perry, Pink Floyd, Alabama, Sheryl Crow and other artists have written a letter opposing the Pandora-backed legislation that aims to reduce royalty rates.
THE LETTER: A MUSICIAN’S PERSPECTIVE ON PANDORA
We are big fans of Pandora. That’s why we helped give the company a discount on rates for the past decade.
Pandora is now enjoying phenomenal success as a Wall Street company. Skyrocketing growth in revenues and users. We celebrate that. At the same time, the music community is just not beginning to gain its footing in this new digital world.
Pandora’s principal asset is the music.
Why is the company asking Congress once again to step in and gut the royalties that thousands of musicians rely upon? That’s not fair and that’s not how partners work together.
Congress has many pressing issues to consider, but this is not one of them. Let’s work this out as partners and continue to bring fans the great musical experiences they rightly expect.
This letter is running in Billboard Magazine and with any luck has gone viral and is gaining momentum and support. A congressional hearing is scheduled for tomorrow in Washington D.C.
For more information: the proposed legislation – Internet Radio Fairness Act; Battling Rihanna Puts Pandora in Box on Lower Music Royalties at http://www.bloomberg.com/news/2012-11-26/battling-rihanna-puts-pandora-in-box-on-lower-music-royalties.html; From Alabama to Rihanna, Starts Fight Pandora on Royalties at http://www.billboard.com/news/from-alabama-to-rihanna-stars-fight-pandora-1008016162.story#/news/from-alabama-to-rihanna-stars-fight-pandora-1008016162.story; and the letter at http://www.musicfirstcoalition.org/sites/default/files/Artist%20Letter.pdf; @iplegalfreebies and www.kasterlegal.com.
BY: Vanessa Kaster, Esq., LL.M.