I just commented on this at Techcrunch (see link below). Pandora, my absolute favorite user-generated programs web radio, will cut off ALL of it's non US listeners because of licensing restrictions. You may guess who is behind this: yes, the music rights licensing organizations - that would be my guess. This really sucks.
Here we have yet another example of how out-moded licensing traditions and related laws kill something that really has value, that has been painstakingly built over the past few years, and that is helping everyone to sell more music online! I think that if the music industry does not start solving these ancient licensing problems ASAP they shouldn't be surprised why everyone is serving their music needs via totally unlicensed sources that never ever go nearly as far as Pandora has to become legal. I mean, come on, how many years have you guys had to give a license to Pandora??? Maybe the European Commission should start thinking about FINES for PROs (Performing Rights Organizations) for not making reasonable licensing deals available? How about a penalty for 'hampering the growth of new business' or for sitting on your rear doing nothing while everyone else is busting their butts trying to reinvent the music business?
It almost seems like, today, a company that tries to do the right thing from the start gets punished at every turn while those that don't even bother with getting any of the rights, period (no... not listing examples here;) are the ones that a) get funded with 10s of millions of dollars b) sell their company for hundreds of millions of dollars, and get to do as they please while the music industry is mutely standing by (since they never bother to check out the new stuff until someone alerts them, not asking for a license would be the safe way to start, right...?) With their outdated licensing structures and seriously backwards business processes most of the music industry is, imho, actually encouraging people to completely ignore the rules if they want to get anywhere, anytime soon. Just like DRM is actually promoting piracy (by punishing legally minded users and giving them less value for more money), these webcasting regulations are forcing companies into non-compliance due to the lack of reasonable options.
If this isn't bizarre, I don't know what is! Here is my call to action for the music rights organizations around the world, the PPL / GVL, BUMA, GEMA, STIM, SESAC and SOCAN: get moving to license Pandora within 30 days - you've already had 2 years to do it!
Techcrunch: Pandora To Shut Out Non-U.S. Users Thursday Evening.
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