Pandora founder Tim Westergren has been sounding off again about PRS for Music’s UK rates. “We’ve seen no indication from PRS that it is prepared to offer economically viable rates for services like Pandora,” he tells PaidContent. “The current rate demanded by PRS of 0.065 pence per listener per track equates to 47 percent of the revenue Pandora achieved on a per listener per track basis in the year we just completed, during which we generated $274 million in revenue and were the clear leader in monetising internet radio.” He also suggests that PRS’ rates are the main reason why “internet radio listening in the UK has not gained mainstream adoption… the number of internet radio hours streamed by all services in the UK in a quarter is roughly equal to the number of Internet radio hours streamed by just Pandora on a single day.” PRS is reviewing the current rates this year, as they expire in June. However, the emergence of several Pandora-esque Spotify apps represents a challenge to the company - albeit one where their developers can’t yet make any money.
Pandora still shuns UK claiming PRS rates aren’t ‘economically viable’
March 28th, 2012 by Music Ally