Pandora News: Web Radio Companies Reach Deal With Labels: Pandora Survives

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Internet radio companies and the major record labels have reached a revised royalty agreement that will make it possible for beleaguered services like Pandora to survive, the New York Times reports. Under the terms of the deal, which the Internet radio companies struck with negotiating organization SoundExchange, minimum per-stream royalties were cut by roughly 40 to 50 percent. As Rock Daily previously reported, popular Web streaming service Pandora was in serious danger of shutting down before yesterday’s deal because 2007’s royalty structure made it impossible for Internet radio to remain profitable.

“For more than two years now I...