Pandora Web Radio Closing Down

by on 08/18/2008 in Business, Internet

The popular web radio service Pandora is shutting down according to reports. The reason for Pandora closing is due to an increase in royalty fees that affect web streaming services.

Pandora has become popular in the Apple world since the release of their iPhone music application called Pandora Radio. The free application allows users to tune into personalized streaming radio stations based on their favorite artists, songs, or classical composers. Pandora currently is the 7th most popular application on Apple’s iTunes App Store.

According to the Washington Post, last year a federal panel ordered a doubling of per-song performance royalties that Web radio stations had to pay to performers and record companies. Pandora is a venture capital funded business which currently makes money through web-based advertising. In the near future, however, Pandora plans to introduce subtle in-stream ads to combat rising costs:

The company will soon start running subtler ads similar to those on National Public Radio.

10 Responses to “Pandora Web Radio Closing Down”

  1. ThePro34

    Aug 18th, 2008

    This is a sad day for Internet Radio. I loved Pandora and used it on a weekly basis. Very entertaining and a good service.

  2. Frank J

    Aug 18th, 2008

    It was a good service and I am sure they may figure something out to remain open.

  3. Egonitron

    Aug 18th, 2008

    I freaking love Pandora, I really hope nothing happens to them.

  4. Jennifer

    Aug 18th, 2008

    I almost wrote about this today myself (but I went for the sexier Harry Potter naked story) since I had recommended Pandora on my blog a few months ago. I’ve been using it for a few years now. I’ll miss it if it really does go completely away.

  5. Judge

    Aug 19th, 2008

    You should include a link to the Washington Post article.

    If true, its a real shame as the algorithm that makes Pandora so good is really worth utilizing in some other application. Without it, I wouldnt have found any of the new music I am interested in.

  6. Frank J

    Aug 19th, 2008

    Hopefully they will figure something out to keep Pandora online.

  7. Frank J

    Aug 19th, 2008

    The Harry Potter story was sexy! Thank you for the comment :)

  8. joe o

    Aug 19th, 2008

    I just started using pandora and love it! It sucks to be coming on the tailend of things. Click on the sponsors! Tell a friend! Do something LOL!

  9. Frank J

    Aug 19th, 2008

    It does suck, but I think they will have something in place to resolve the issue.

  10. Victor W.

    Aug 25th, 2008

    It sucks… I love the radio, it is awesome… I’ve even consider paying a small fee to use it.