Some of the biggest names in the music industry like Rihanna, Missy Elliott, and Billy Joel expressed their opposition to the move of Pandora Media to change how they are being compensated through an open letter.
Pandora Media is lobbying in the U.S. Congress for the passage of the Internet Radio Fairness Act that will change regulations on how artists get their royalties.
A group of more than a hundred musicians who claim that they are fans of the media brand say that the proposed bill will drop their royalties by as much as 85% when their songs are played over the internet.
An article on Billboard magazine reports on how the artists see the move of Pandora as very unfair knowing that musicians rely heavily on their royalties.
Artists coalitions and other organizations like SoundExchange and musicFirst reiterate the stand of artists with regard to the matter.
Pandora is an online music company that heavily relies on advertisements. The company was established more than ten years ago. Last October, the company reported that they have a 7% share of the total radio listening in the United States or up from 4% last year.
The success of Pandora has been double-edged since the more customer it gets, the more payout it needs to give to artists for streaming their songs online. They have a set rate until 2015.
Pandora and other online music companies are lobbying for the bill arguing that providers like cable and satellite follow different rates. They also argue that the current law is unfair to new media including internet radio. They are pushing for technology-neutral playing field in the music industry.