washingtonpost.com wrote:Perhaps it's a well-honed ruse to drum up support from the company's million-plus users who listen to Pandora daily, but there are some dire economics standing in the way of web radio. Last year, the Copyright Royalty Board ordered per-song performance royalties to be more than doubled for use online. Rates will increase from 8/100 of a cent per song per listener to 19/100 of a cent per song per listener by 2010. Pandora's royalty fees this year are projected to hit $17 million, about 70 percent of its projected revenue for the year. The fee increases don't effect traditional or satellite radio, but SoundExchange, an organization that represents artists and record companies, is trying to up those rates as well.