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Pandora Lives to Sing Another Day

pandora09.24.08.pngMembers of different music industry advocacy groups reached an agreement yesterday about some types of royalty rates online, but did not come to any consensus about changing what Pandora and other Internet radio services consider rates that are too high.

The deal involves new laws on paying mechanical royalties for interactive streaming music and limited music downloads, but does nothing about so-called performance royalty for Internet radio, which affects Pandora.

Pandora’s spokesperson said the company would continue to operate but that it could shut down at any time depending on how it feels the fight against royalty rates is going. Currently, Pandora pays 70 percent of its revenues to labels and artists.

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