The New York Times reported last week that record labels and online stations have agreed on new royalty rates that cover music streaming.
Sites, including the popular Pandora, argued that the previous rates were “eating up revenue” and could to put them out of business, according to the Times.
“They (record labels) clearly didn’t understand the potential of the medium and its reach,” Tim Bajarin, president of firm Creative Strategies, is quoted as saying. “From the beginning they should have been very flexible and realized that this was an opportunity for them to gain even broader audiences.”
Read the full story here.
