Thank goodness there are some clear heads out there who are drilling down on the smoke that Pandora has been blowing while crying to Congress. If there was ever a better example of faux entrepreneurs I don’t know what it would be.
Here’s a great one from the Seeking Alpha financial blog “Crying To Congress Will Not Save Pandora’s Investors”:
The solution, Tim, is quite simple. It’s not a matter of crying to congress asking for a law to protect how much you have to pay for the music you give away to listeners for free. It’s a matter of increasing advertisements delivered to your listeners on a per song basis, or charging a subscription fee so that you can pay the requested royalty rates and concurrently turn a profit. Investors need to ask themselves why Pandora is petitioning congress for a law which will tell rights holders how much they are allowed to charge for their work, rather than simply ramping up the delivered ads or creating a subscription based service.
Also CNET isn’t buying it “Pandora Offers Song and Dance About Music Sales“:
Pandora’s leadership is trying to whip up support to get the government to lower the rate Internet radio services pay to play music. This will be the second time in Pandora’s history that the company has asked for price breaks.