Pandora music service dead in the water
Sad news as it looks as if Pandora may have to shut down. Pandora is a great music service that lets search for music and then plays you music it thinks you might like. It’s a great way of finding new bands and artists and is one of the best Internet radio services around. Licensing constraints have already meant that only US residents can use Pandora, but the end may be near, even though Pandora offers the chance to buy the music you hear through iTunes and Amazon.
A recent hike in Internet radio royalties may be the nail in the coffin for Pandora. About 70% of Pandora’s income goes on royalties. The website will reportedly reel in $25 million this year, but it still won’t enough to keep it afloat. The rates are set to double in 2010. Pandora is going to have to seriously rethink its overall business model if it wants to stay afloat.