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Business News (more headlines) 03-13-2013

NMPA To Pandora - New CEO Is An Opportunity To Mend Fences With Songwriters

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"Pandora's recent announcement that CEO Joe Kennedy is stepping down and it will begin a search for a successor provides an opportunity for the online music company to mend fences with the songwriting community.

Songwriting is essential to Pandora's business model, yet currently they only pay approximately four percent of their revenue to the songwriters who create the music that listeners enjoy. Pandora is suing to reduce that four percent to an ever lower amount. This compares to the roughly 50 percent Pandora pays to record labels and artists. The four percent Pandora pays is unfair and must change. In other areas of the music business, songwriters and music publishers often earn the same amount that is paid to record labels and artists.

I wish Mr. Kennedy the best, but a new CEO could go a long way toward creating a true business partnership with the music industry by addressing this issue and respecting the contribution of songwriters."

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