The RIAA giveth and the RIAA taketh away.
Pandora announced last week that mobile use of it’s highly popular free radio application will be capped at 40 hours per month for non-premium customers. After 40 hours, users will be prompted to either stop listening or pay 99 cents to continue listening for the duration of the month.
While the company does this regretfully, they really had no choice. Their licensing fees for songs have increased over 25% in the last 3 years. Analysts say that it will go up another 16% over the next two years. Thankfully this cap only applies to less than 4% of the total listening base. The 40 hour cap should allow Pandora to continue offering a free service at all.
The RIAA is notoriously opposed to any streaming options, including legal ones. They would much rather people buy physical CDs like it’s the 90′s rather than find a logical alternative using modern technology. It should be noted that music piracy dropped by 17% LAST YEAR ALONE thanks to streaming services such as Pandora and Spotify.
The RIAA needs to consider this. IF they keep raising fees, they could very well eliminate streaming services. The everyone would go back to pirating and the industry would make NO money. Some money versus no money…sounds like a really hard choice.
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