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January 08, 2008

Pandora UK closing next week...blames high royalty demands...

The Register (UK) | Read Full Story >

In an email to users, Pandora founder Tim Westergren wrote:

“After over a year of trying, this has proved impossible. Both the PPL (which represents the record labels) and the MCPS/PRS Alliance (which represents music publishers) have demanded per track performance minima rates which are far too high to allow ad supported radio to operate and so, hugely disappointing and depressing to us as it is, we have to block the last territory outside of the US.”

“We have been told to sign these totally unworkable license rates or switch off, non-negotiable…so that is what we are doing. Streaming illegally is just not in our DNA, and we have to take the threats of legal action seriously.”


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