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125 Major Acts Unite To Oppose Pandora Plan To Cut Net Radio Royalties

Billboard_Ad125 major artists spread have signed a letter opposing Pandora’s plan to cut artists’ pay when
music is played on internet radio. Artists participating include Common, Dead Kennedys, Missy Elliot, Vince Gill,
Don Henley, Billy Joel, Maroon 5, David Sanborn and Roger Waters; and with support from SoundExchange and MusicFirst, a coalition of industry trade groups including RIAA and A2IM, the letter will be published as a full page ad in Billboard later this week.


Internet broadcasters led by Pandora are pushing Congress to pass the Internet
Radio Fairness Act which could cut related
royalties paid to musicians by as much as 85%. 

The
artists that signed the letter praised Pandora, but after strong growth in revenues and a successful
IP, questioned why Pandora is pushing Congress to cut payments.  “That’s not fair and that’s not how partners work
together,” the open letter explains.

“This
issue is critical to the tens-of-thousands of recording artists we represent –
all of whom rely on this digital performance revenue stream to make a living,”
said SoundExchange President Michael Huppe.  “It is important that we
protect artists and the long-term value of their music, which is, after all,
the foundation of Internet radio.”

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3 Comments

  1. It’s not just the rates are cheaper there is a huge issue for those of us that care about free speech in this act namely Sec 5 (see below) and this part alone is one of the most anti competitive clauses build into legislation that I’ve seen in 25 years at looking at bill’s.
    SEC. 5. PROMOTION OF A COMPETITIVE MARKETPLACE.
    (a) Limitation Of Antitrust Exemptions.—
    (1) EPHEMERAL RECORDINGS.—Section 112(e)(2) of title 17, United States Code, is amended—
    (A) by inserting “, on a nonexclusive basis,” after “common agents”; and
    (B) by adding at the end the following: “Nothing in this paragraph shall be construed to permit any copyright owners of sound recordings acting jointly, or any common agent or collective representing such copyright owners, to take any action that would prohibit, interfere with, or impede direct licensing by copyright owners of sound recordings in competition with licensing by any common agent or collective, and any such action that affects interstate commerce shall be deemed a contract, combination or conspiracy in restraint of trade in violation of section 1 of the Sherman Act (15 U.S.C. 1).”.
    (2) DIGITAL SOUND RECORDING PERFORMANCES.—Section 114(e) of title 17, United States Code, is amended by adding at the end the following:
    “(3) Nothing in this subsection shall be construed to permit any copyright owners of sound recordings acting jointly, or any common agent or collective representing such copyright owners, to take any action that would prohibit, interfere with, or impede direct licensing by copyright owners of sound recordings in competition with licensing by any common agent or collective, and any such action that affects interstate commerce shall be deemed a contract, combination or conspiracy in restraint of trade in violation of section 1 of the Sherman Act (15 U.S.C. 1).
    Click here>>>>> http://bit.ly/fullirfa to see the full bill and call, email, and connect with your representative via social media NOW.

  2. I’m a Pandora subscriber and am due to renew this month. I have canceled my renewal and have written the following to Pandora at its email form here: https://help.pandora.com/customer/portal/emails/new
    Not Renewing Because of Your Attempts to Reduce Artist Compensation
    My account’s annual renewal occurs in ten days. I love your service and will greatly miss it, but I regret that I’ll not be renewing because of your lobbying to reduce the percentage of revenues paid to artists.
    Some of my favorite artists, including Jackson Browne, have spoken out about this issue, and I believe they are correct. Your top executives are making millions of dollars, and artists also deserve a share of Pandora’s substantial earnings. I will not contribute to a lobbying effort that is intended to deprive artists of that sustenance.
    Note that as soon as you drop this lobbying effort (without having attained its ends), I will re-join your service.
    Sincerely,

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