Last year Pandora paid it’s CEO over $29 Million Dollars. To be exact $29,167,388.
Aretha Franklin got $0 from pandora for her 1967 recording of RESPECT.
At least that’s what we must assume from Pandora CEO’s admission they are no longer paying royalties on pre 1972 recordings.
This confirms what was reported in the Wall Street Journal last year! So the woman who sang RESPECT get’s no respect from Pandora or royalties from this classic 1967 recording. Instead of finding a sustainable business model to create lasting value for shareholders, Pandora has resorted to legal gimmicks to try to temporarily prop up it’s bottom line.
The latest legal gimmick from Pandora relies on the fact that sound recordings made before 1972 are covered by a patchwork of state law and not federal law. Pandora’s highly questionable interpretation is that it doesn’t have to pay royalties to performers like Aretha Franklin on these songs.
It’s estimated that Pandora saves %5 with this gimmick. 5% from older artists who sometime are no longer physically able to to tour and perform. Classy.
Pandora is already massively unpopular with songwriters and performers after last years failed legislative attempt to lower royalties. It then sued all three songwriters collectives. Now it is on a collision course with the rest of the recorded music business and artists. Pandora has no friends left in the music business. How is this a good long term strategy for it’s shareholders? What happens when this company tries to expand to other markets that don’t have the compulsory licenses and rate courts that Pandora so skillfully abuses?
It’s bad enought that terrestrial radio already doesn’t pay performers royalties. Now Pandora has stopped? It should also be noted that Sirius/XM is also not paying Royalties on pre 1972 recordings. How did they both separately come up with that idea? hmmm. Surely there is no collusion here? And it’s Songwriters that are required to operate under DOJ anti-trust supervision? WTF?
When will the sickening greed from these multi-billion dollar silicon valley firms finally end? Who will finally stop these modern day robber barons? Pandora demonstrates once again it is the most artist unfriendly music company out there. Act accordingly folks. Plenty of other options out there.
( You can do something about the terrestrial royalty problem. You can Tell Congress #IRespectMusic. This is a petition to institute a royalty for performers on terrestrial radio.)