Pink Floyd reunites -- to battle Pandora
The famed rock band's surviving members are targeting the Internet radio service over its paltry royalties.
Updated at 6:36 p.m. ET.
Money, it turns out, isn't such a gas.
The surviving members of the progressive English rock band Pink Floyd are reuniting in a public battle against Pandora Media (P), claiming the Internet radio service is trying to "trick artists into supporting their own pay cut."
Legendary rockers Roger Waters, David Gilmour (pictured) and Nick Mason outlined their grievances in a USA Today op-ed that sounds like something out of their 1973 hit "Money," which contains the warning: "Share it fairly/But don't take a slice of my pie."
The battle is over Pandora's approach to royalties, with the streaming service campaigning to lower its payments. Last year, Pandora sued the American Society of Composers, Authors and Publishers (ASCAP), which collects royalties for songwriters and publishers, and it supported the Internet Radio Fairness Act, which aimed to decrease royalties paid by streaming services.
What provoked Pink Floyd's surviving members to take to the pages of USA Today is a new tactic in Pandora's royalty battle. They write that the company is reaching out to artists around the country, asking them to "be part of a conversation" and to sign a simple "letter of support" for Internet radio.
"Who doesn't support Internet radio? What scrooge would refuse to sign such a positive, pro-music statement?" they note. "Of course, this letter doesn't say anything about an 85% artist pay cut. That would probably turn off most musicians who might consider signing on."
Other musicians are joining in with outrage. David Lowery, the founder of Camper Van Beethoven and a co-founder of Cracker, wrote in a blog post Monday that Pandora played his song "Low" more than 1 million times "and all I got was $16.89." He added: "Why doesn’t Pandora get off the couch and get an actual business model instead of asking for a handout from Congress and artists?"
Pandora took issue with Pink Floyd's characterization, writing to MSN moneyNOW that the band members "have been given badly misleading information – the result of a well-orchestrated campaign by the RIAA and their lobbying arm to mislead and agitate artists."
The assertion of an 85% pay cut "is simply not true," a spokeswoman wrote in an email. "We never, nor would we ever, support such a thing," she wrote.
Royalties have been a major sore spot for Pandora. Chief executive Joe Kennedy told Bloomberg in March that it's looking for "a royalty structure that allows Internet radio to grow as fast as possible."
But it's not as if Pandora isn't growing. The company's first-quarter revenue jumped by 55% to $125.5 million, although it also booked a $28 million loss. Its shares had climbed by 65% this year through Monday.
However, as the Pink Floyd members wrote, "a business that exists to deliver music can't really complain that its biggest cost is music. You don't hear grocery stores complain they have to pay for the food they sell."
Follow Aimee Picchi on Twitter at @aimeepicchi.
Pandora should play nicer. Most musicians have existed without Pandora. Pandora without musicians is dead in the dustbin.
16.89 for a million plays is basically 1/1000 of 1 cent. per play.
I can understand their frustration.
That IS pretty low Pandora.
Shame on you. I can find music elsewhere anyway.
Pandora really seems to be equal to a spoiled brat who can also be a bully.
They've had their 15 minutes....not that i ever liked it enough to buy it.
Someone needs to find out what's next and let Pandora go the way of VHS tape.
I hope PINK FLOYD and all of the other musicians win out on this. Most musicians got screwed by there managers and record companies, why should they give up any of there royalties.
These musicians worked hard to provide us with the GREAT MUSIC they created, if anyone thinks there life was easy you don't have a clue.
My point is, in order to record an album, to practice, pay the staff, rent on space, transporting equipment, and so on, it costs big money to put those artists out there. I'm just using then as an example. I grew up when recording artists, like the Kinks were scammed out of their money, and as well as several in MoTown and many more. Well I say NO MORE. Pandora, the world, listen up. Either practice up and create hour own fame, or pay the price. These people through BS&T have earned their dreams, realized them, and in perpetuity they should reap the full rewards of their artistry as should their families after until the end of time in every form of reproduction realized now and yet to come.
I'm thinking of telling my kids, my grandkids to BOYCOTT PANDORA.
The internet already caused the death of the record industry years ago, hence outrageous concert ticket prices.
Good old stores like The Wherehouse, Tower Records, Virgin records and Mom & Pop stores could not sell products kids could get for free. Now this...
drive to Detroit and tell Dr Dre he don't deserve royalties from something he did 20 years ago
Copyright © 2013 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.
Sales of collectible automobiles hit an all-time record this year, leading some to speculate that soaring prices could lead to a huge deal.
- Bah, humbug! New Christmas tree tax proposed
- Should you get a store credit card?
- The best credit cards of 2013
- Can a new chief exec keep GM on course?
- 'Tips for Jesus' big spender unmasked?
- Chinese investors are buying up Detroit
- Mega Millions jackpot hits $344 million
- 5 reasons to think twice about a balance transfer card
- Will I have to pay taxes because of a foreclosed home?
More Market News
The offering could become the second-biggest this year if underwriters exercise an option to buy more shares.