With Higher Royalties, Pandora Considers Shutdown

Law360 (August 19, 2008, 12:00 AM EDT) -- Pandora Media Inc. is considering shutting down its popular Internet radio service as a result of higher copyright royalty rates, which are set to go into effect in the coming years.

The company has already cut off its service outside the United States, most recently ending its broadcasting in the United Kingdom after failing to negotiate a more manageable licensing fee with rights organizations there.

“We're approaching a pull-the-plug kind of decision,” Tim Westergren, Pandora's founder, told The Washington Post last week. “This is like a...
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