This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Pandora Must Promote Indie Artists, Expose Music Industry Injustice

NEW YORK (TheStreet) -- It took investors a couple years' worth of kicking and screaming to come around to Pandora (P). Of course, it's easy to jump on the bandwagon as a stock trysts with 52-week highs.

How long will it take the music industry, particularly artist advocacy groups such as musicFirst, to not only wake up to Pandora and the rest of Internet radio, but do something meaningful to benefit the independent artists it claims to represent?

Every few weeks musicFirst fires off a nasty email that trashes Pandora's efforts on Capitol Hill to secure more reasonable royalty rates for Internet radio. The latest came Friday. Neil Portnow, the president of The Recording Academy spews the usual rhetoric: Pandora wants to "reduce (the ability of artists) to earn a fair wage from (their) music."

Simply put, that's crap. If it wasn't for Pandora and other Internet radio pioneers such as Spotify and Rdio, artists, particularly local and independent acts would make much less before or after reform. In fact, Pandora has done more for local and indie artists in the last 30 minutes than the music industry has in the last 10 years.

The Music Industry Should Go After True Injustice

I spend quite a bit of time in Hollywood. I live a stone's throw away in Santa Monica. When you interact with musicians and get a feel for the local music scene in Los Angeles, you realize just how absurd it is that the music industry paints Pandora as the bad guy.


Last week I went to a show at a local bar. When I arrived, the guy at the door asked who I was there to see. I told him the name of the band. That needed to happen 20 times before the band would make any money that night.

For each person after 20 the band gets to keep the $10 cover charge. I counted about 34 people there for the performance. So that's $140 for one hour of performing (plus setting up and breaking down) to split between the five guys in the band. Assuming you're lucky enough to play somewhere every night (obviously that's not realistic), you're not going to get very far in Southern California (or anywhere) living on $28 a day.

1 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,122.01 +15.31 0.09%
S&P 500 2,000.12 +0.10 0.00%
NASDAQ 4,569.6210 -1.0160 -0.02%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs