Pandora recently made a blast on the iPhone 3G, thanks to an innovative on-deck application. The iPhone-tailored Pandora application streamed more than 3 million tracks during the first three days, a nice bull-charge for the company and mobile streaming radio in general.
But Pandora has also been making waves on Capitol Hill, part of a play for survival. The creator of custom-crafted radio stations has been arguing for months against elevated performance rights licenses on recordings for internet radio stations.
On Tuesday, Pandora Media president Joe Kennedy argued against the increases while pointing to a lack of parity between different forms of radio. "We urge Congress to fix today's broken royalty system and establish a level playing field by legislating royalty parity across all forms of radio, so that the government is not picking winners and losers when broadcast, cable, satellite and internet radio compete," Kennedy said.
Perhaps most glaringly, terrestrial radio stations in the United States pay nothing for recording performances, though labels continue to rally against that reality. Kennedy, testifying before members of the Senate, noted that Pandora faces royalties that reach nearly 70 percent of its current revenue totals. The company dynamically generates stations based on expressed listener preferences, the ingredients for an incredibly expensive fee structure.
In March of 2007, the Copyright Royalty Board (CRB) approved a rate structure that ramps per-stream payments to $0.0019 by 2010, with a $500 per-station minimum.

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