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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