Pandora Internet Radio to go Silent?

Aug 17 2008, 10:00am CDT | by Luigi Lugmayr

The Pandora Internet Radio service might have to pull the plug because of the royalty fees.
Apparently this year the royalty fees will cost Pandora 70% of its projected $25m in revenue. This kind of cost would kill almost any business.
Pandora has about 1 million subscribers. The service is rather unique as it allows listeners to automatically create their own personalized radio channel.
The Washington Post has a good article on the stand off between SoundExchange and the music webcasters.
Eventually there needs to be a solution that allows online radio to run profitable unless the big media companies follow a strategy to be the only ones left to offer online radio. TechCrunch has a story titled "Perhaps Pandora Must Be Our Sacrificial Lamb". I hope it rather hits other webcasters that are less innovative than Pandora.
Visit also the Pandora site if you have not used them yet.

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Luigi Lugmayr
Luigi is the founding chief Editor of I4U News and brings over 15 years experience in the technology field to the ever evolving and exciting world of gadgets. He started I4U News back in 2000 and evolved it into vibrant technology magazine.
Luigi can be contacted directly at ml@i4u.com. Luigi posts regularly on LuigiMe.com about his experience running I4U.