Now that leading internet audio portal Pandora has given up its quest to equalize the royalties it pays with satellite and cable platforms, The Hill reports that RIAA is hoping to enlist the service as an ally in RIAA’s effort to force a performance royalty on radio stations.
Pandora had backed a proposed royalty bill specifically because it avoided dragging AM and FM radio into the debate. Pandora felt that the terrestrial issue made it far less likely that a bill would gain any traction.
But musicians protested the bill Pandora wanted since it would have lowered Pandora’s rate to equalize it with services such as Sirius XM, which musicians saw as a pay cut.
According to The Hill, now that the RIAA is no longer opposing Pandora, it is hoping to get Pandora’s support for establishment of a performance royalty on radio.
Radio stations already pay royalties to the creators of music. It has been exempted from paying a performance royalty in recognition of the marketing value of free over-the-air exposure of music.
Although Pandora has backed hitting radio with a performance royalty in the past, according to The Hill it has no intention of pushing for one at present.