Say it ain't so.
The uber entertaining "music genome project" website, Pandora, may soon shut down due to risks of copyright infringements and the cost of digital music distributions from big record companies.
Founder Tim Westergren said that the site's funds are constantly depleting because of royalty fees. "We're approaching a pull-the-plug kind of decision," said Westergren according to the Washington Post report. "This is like a last stand for webcasting." Pandora averages about one million listeners per day and its new iPhone application (aside from being awesome) is one of the Apple's top 10 most downloaded applications.
And he mentions "webcasting" because other radio music sites are in the same situation as Pandora. This year, Westergren's site has to fork over 70% of its projected $25 million revenue for royalty fees. Although there are current negotiations happening between webcasters and music companies that could eventually lower the fees-per-song, Westergren said that his music site will be "done" if investors fail to see any profit from it. Tis' a sad tune indeed.