I have just received this e-mail from Pandora, it seems that due to the unfair
demands being made by the PPL and MCPS\PRS, they intend to stop streaming to
the UK on the 15th of this month. They also state that they are fighting for
there survival in the US for similar reason.
Below is the e-mail in full
If you have never used\knew what Pandora is check out
www.pandora.com
Tim
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This is an email I hoped I would never have to send.
As you probably know, in July of 2007 we had to block usage of Pandora outside
the U.S. because of the lack of a viable license structure for Internet radio
streaming in other countries. It was a terrible day. We did however hold out
some hope that a solution might exist for the UK, so we left it unblocked as
we worked diligently with the rights organizations to negotiate an
economically workable license fee. 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.
Based on your email address, we believe you may be listening from the UK. If
you are in fact listening from the U.S., please disregard this email.
It continues to astound me and the rest of the team here that the industry is
not working more constructively to support the growth of services that
introduce listeners to new music and that are totally supportive of paying
fair royalties to the creators of music. I don't often say such things, but
the course being charted by the labels and publishers and their
representative organizations is nothing short of disastrous for artists whom
they purport to represent - and by that I mean both well known and indie
artists. The only consequence of failing to support companies like Pandora
that are attempting to build a sustainable radio business for the future will
be the continued explosion of piracy, the continued constriction of
opportunities for working musicians, and a worsening drought of new music for
fans. As a former working musician myself, I find it very troubling.
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. Lest you think this is solely an international problem, you should
know that we are also fighting for our survival here in the US, in the face
of a crushing increase in web radio royalty rates, which if left unchanged,
would mean the end of Pandora.
We know what an epicenter of musical creativity and fan support the UK has
always been, which makes the prospect of not being able to launch there and
having to block our first listeners all the more upsetting for us.
We know there is a lot of support from listeners and artists in the UK for
Pandora and remain hopeful that at some point we'll get beyond this. We're
going to keep fighting for a fair and workable rate structure that will allow
us to bring Pandora back to you. We'll be sure to let you know if Pandora
becomes available in the UK. There may well come a day when we need to make a
direct appeal for your support to move for governmental intervention as we
have in the US. In the meantime, we have no choice but to turn off service to
the UK.
Pandora will stop streaming to the UK as of January 15th, 2008.
Again, on behalf of all of us at Pandora, I'm very, very sorry.
-Tim Westergren (Pandora founder)
