Case ID: 310026     Solution ID: 29053

Pandora Royalties Kill the Web Radio Star A Case Solution


Being the president and the CEO of Pandora, (the largest and most popular web internet radio), for Joe Kennedy business was never easy. It was all over the news that the Copyright Royalty Board (CRB) had announced a 2.5 times increase in the royalties that would continue for the next 5 years and thus was mandatory for the web radio industry to pay. Such moves were meant to hurt the business’s profitability. With time Pandora earned the name of Music DNA manufacturer because they played the role of a webcaster, the one who could beautifully amalgamate the versatile attributes of a music. This was given the name of the Music Genome Project which would provide a selection of songs having the same DNA structure as the original song as chosen by the selector. However Pandora and other similar businesses were now subject a massive royalty charge that was significantly higher than those paid by satellite radio and from whom AM/FM were exempted. This case gives a detailed illustration of the copyright issues, the emerging influence of the media and the specialized laws.

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