Pandora Stakeholders

In the past decade, the role of the music publisher has shifted due to the popularization of digital music and streaming services. Digital music and streaming services necessitate various kinds of licenses, rather than the simpler nature of radio licensing.

I believed the basic aim of these websites were to digitally respond reasonable to the technological changes of how music was conveyed to drive sales In a positive manner but musician ended up getting a small fraction of the income receive from streaming videos and audio songs as royalties. I can personally testify to this with my personal attitude towards many popular songs I downloaded for free online that I heard for the first time on radio. In his article published in the New York Times on January 2013, Ben Sisario commented on how online streaming has hurt the industry and partially reduced sales. According to him, Many consumers has greatly welcomed this system citing them as a smart way to save money since streaming saves them more money than buying the physical album. This will virtually hurt the artist survival unless they are engaged in an important side business for survival. ( Hartwig Masuch, chief executive officer of BMG rights

Both the radio and records have had significant impact on the development on rock n’ roll. Similarly, the radio and records gave musical artists an extended ability to stretch their audiences. Strongly intertwined, while they both gave listeners the ability to find artists they like, there are some clear differences between each the developments of the radio and that of records. In the years prior, the music industry was built on the “Tin Pan Alley” system that strictly controlled musicians and popular music (Schloss, Starr, and Waterman, p. 2-7). And much like the spirit of rock n’ roll itself, people within the industry eventually grew tired of conformity and no longer felt the need to follow the rules. Radio stations started forming separate licensing companies (BMI), which allowed them to play what they want (Schloss, Starr, and Waterman, p. 7). With an “open door” policy that allowed broadcasters to play music they wanted, radio stations had the important job of sharing a variety of music that could be heard all across the country. The radio began to function as a way of transporting records and genres of music all over the country from the traditional cultures they formed, which includes R&B, blues, and country. This reshaped the music industry by expanding its reach to new audiences. This, “allowed songwriters working outside of mainstream pop to claim royalties on the use of their songs on broadcasted

The music industry is an oligopoly. Since the late 1800’s people like Thomas Edison have been buying up patents in communication technology, forming monopolies, leading to a non-competitive entertainment industry. With only a handful of corporations controlling all aspects of acquisition, distribution and marketing of music, harsh business principles create an exploitative industry that takes the best of what artists have to offer and leaves many of them unable to support themselves. Beginning in the 1950’s with payola and white cover music and ultimately evolving into iTunes and Spotify, the music industry has grown into a billion dollar industry with far-reaching influence and control. Contracts rarely serve the artists’ best interest and many are left out to dry when their usefulness has expired.

Over the past fifty years, the British Music Publishing industry has undergone dramatic changes. It has evolved as an entity with innovations in technology, changes and creations of laws and new mediums to promote and exploit songs to a wider audience. Therefore, the way in which the music publishing industry operates and exploits its assets has completely transformed, and continues to do so at a rapid pace. This paper will attempt to explore the ways in which publishers exploit song copyrights and the way in which this has changed over the past 60 years. It is important to define what is meant by copyright and its role within the industry. The Performing Right Society website states: “Copyright

Both BMI and ASCAP have been issuing fraction music licensing and royalties would be paid once these services are asking either of them to have license. This is something that the U.S. Justice Department was alarmed, in which they're concerned of what BMI was doing.

Pandora has a workforce of over 1,400 employees innovating how people listen to and experience music. The employees of Pandora are musician-analysts, exploring and studying music every day, one song at a time. The VH1 Save The Music Foundation will be a great non-profit organization to partner with because Pandora's employees have a strong passion for music. The foundation’s mission is to restore music education in schools throughout the United States and show how important music education is (“VH1 Save the Music Foundation,” 2015). Pandora’s employees “believe in the value of music” and will be enthusiastic about restoring the value of music education (“About Pandora Media,” 2015). To help the foundation achieve its goals, the music-loving

A crucial element in the success of many artists is the amount of radio play they receive. Obtaining playtime has never been easy, and just like many other things that are difficult to obtain, a black market has developed in order for artists to receive radio play. “Payola, in the music industry, is the illegal practice of payment or other inducement by record companies for the broadcast of recordings on commercial radio in which the song is presented as being part of the normal day’s broadcast” and not the day’s sponsored broadcast (“Payola”). Artists benefit from their songs being played on the radio because their songs can be heard by millions of others, which will in turn build their fan base.

The idea that several large conglomerates can control what gets played on the radio nationwide is scary and is the reason why payola laws were originally written. The original FCC payola laws were put in place to prevent the secretive control of public airwaves. Currently it is largely unknown that ‘local’ radio stations simply play the national playlist and are controlled by the conglomerate and their potential deal with record

Producers of musical content cannot undo the adverse effects that piracy has had on the industry. Because of the internet and the way individuals have manipulated it to obtain music, many people are unwilling to change their habits. Here lies the issue between the producer and the consumer. Acts like the Stop Online Piracy Act (SOPA) and PROTECT Intellectual Property Act (PIPA) work against the incentive of many consumers by telling them that they cannot do what maximizes their utility. Producers are thus working against the likings of the consumer. This is wrong.

This case study about the Spotify business model allows a broader vision of what the digital music industry is. In a short time, many companies have developed and managed marked their territory in a highly competitive industry. The start-up Spotify has undergone a remarkable evolution in a financial point of view but also in terms of its popularity. Its various competitive benefits regarding the market leader and its respect for music labels have enabled the company to be renowned and to have a reputation in the real business. Today, five years after its creation, Spotify is certainly criticized in some aspects of

3-4). While these statistics provide a look into the numerical growth of the streaming industry, it is also important to discuss the power that these streaming services have generated—over both the music industry and over established/aspiring artists. Subscriptions are on the rise, having increased significantly over the past ten years, but as is the amount of users streaming music on a free-trial or ad-supported basis—ultimately undercutting the music industry and artists alike. Blewett and Gollogly (2017) elaborate on this point, stating that, by the end of 2016, paid music streaming subscriptions drove a revenue growth of 60.4%—this growth more than offsetting a “20.5% decline in downloads” and a “7.6% decline in physical revenue” (Blewett & Gollogly, 2017, para. 4). Moreover, Borja and Dieringer (2016) explore the concept of streaming even further in their academic article, positing that the decline in paid digital downloads may be a direct result of streaming—as, music streaming can be perceived as a “complement” for music piracy, in which listeners can freely sample music to pirate later on (Borja & Dieringer, 2016, p. 1). The authors also suggest that streaming can provide a “venue for discovering and listening to new releases”; and after completing their 1052 surveys, conclude that streaming increased the likelihood of piracy by

Pandora originally started with a subcription type of business model wherein users must pay $36 per month after they have used up their 10 hours of free access. The original model used was the free trial type. What happened was after the free trial of 10 hours was used up, the customers were unwilling to pay for the subscription fee. Now, the new and current model being used by Pandora is the freemium business model. The new model offered users longer time limit in using their features, which could be used again in the next month and

Introduction: Setting the trend for the future, the distribution and consumption of recorded music transformed dramatically with the launching of Apple’s iTunes in 2001. The proliferation of online music subscription services and other music sharing services exerted a great pressure on the conventional music distribution business model. Combined with this transformation, piracy of digital music had a profound impact on the whole industry. These worsening conditions in the market place for recorded music forced both established and upcoming new artists to experiment with new ways of selling their music.

When wanting to listen to a song today, one no longer has to buy or download a physical copy. In today’s world, streaming has become one of the top ways of retrieving music content. This major change has led to a profound shift for the music industry and its artists. It has developed a continuous conflict that affects the way music is distributed and how artists make a living. Listeners stream music electronically through their computers, phones, cars, and more. Most of these streaming platforms allow for the content to be free, which directs to the question of whether music should be free or not. Streaming is a topic that has presented itself to be a valid issue on whether it ultimately hurts or helps artists and their careers. Streaming has both pros and cons, but in order to aim to figure a possible solution there needs to an examination of the history of the issue, a proper analysis of both sides, and evaluating its importance.