Pandora now pushing radio to pay for music
arstechnica.com
arstechnica.com
They might be able to deal with small royalty fees, but anything drastic would bring down nearly all small stations.
You can connect and iPhone to your car stereo and enjoy Pandora now, but that is not as intuitive and safe as how car stereos have been for decades.
FM (and DAB) radio will be around for a very long time - they're simply the most efficient way of delivering music and radio programming to large numbers of people across a wide area.
It works for you now because about three people and a dog are doing it, but if even a fraction of the audience of an average regional FM radio station started to stream their personal Pandora / Last.fm accounts or listen to on-demand programming over the 3G network instead, it would very quickly reach capacity.
A Clear channel or iBiquity (HD radio which is boring and needs a Pandora to jump start it) could be potential buyers of Pandora. I would say those who invested are looking at such entities as potential buyers. Also, another potential reason why Pandora is jumping onto RIAA ship saying clear channel should pay the same rates.
It may not be feasible now with 3G, but 4G and other future wireless options will be.
The hypocrisy is on the part of the music industry, not Pandora.
Look, I get that the internet is TEH FUTURE and all the old distribution channels are dumb and old. I get it. But there are reasons for why things are the way they are. And to say that the record labels are in cahoots with the radio stations is insane. The record labels hate that, by an accident of history, U.S. terrestrial radio doesn't pay performance fees (they do pay mechanical royalties to songwriters). More: http://news.ycombinator.com/item?id=698651