The reason is that Sound Exchange, the
What this means for all Internet radio stations is that either Congress steps in and attempts to resolve the royalty issues (not likely, considering their record on resolving any issue...), or the stations will need to start charging a subscription fee for their services. Of course, Pandora could start advertising on their site and on the iPhone app to generate some revenues, but as TechCrunch.com's Michael Arrington says, "Perhaps Pandora must be our sacrificial lamb" to focus attention on the entire issue of the recording industry, digital rights, and internet radio stations.
What's your opinion on the intenet radio royalty issue? Leave us a comment.