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Tuesday, September 28, 2010

Pandora says "No" to Canada

Pandora

Pandora may be extremely popular in the United States, but its internet signal is not penetrating North-of-the-border and it has everything to do with money. Toronto’s Globe & Mail newspaper says Pandora hit a serious snag over royalty fees they would have to pay in Canada. First, the agency that collects music royalties in Canada has filed a request with Canadian authorities to charge web-based music sites that stream to mobile devices either 45% of the site’s gross revenues received in Canada or 7.5-tenths of a cent for every song streamed, whichever is greater. This fee is separate from already established royalties that music services must pay to SOCAN, which represents songwriters and music publishing companies. Pandora founder Tim Westergren says those fees are too much to absorb, saying “These rates … are astronomical. As long as rights societies take this approach, they will prevent Pandora from launching to Canadian users.” Westergren argued the fees they want Pandora to absorb would be 20-times what AM/FM radio stations currently pay. While Pandora may be saying “No” to Canada, the newspaper says California-based MOG may be interested in streaming to Canada, but at a cost. MOG CEO David Hyman says, “It would just end up making the price to the consumer more expensive.”

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