Wednesday, September 22, 2010

Pandora - you can't get there from here.

Pandora is an apparently terrific "legal" music service that we can't get in Canada - an all too familiar theme. For example, try this link to Pandora from inside Canada. You just can't get there from here.

Here's a CBC report on why Pandora thinks that Canadian royalty rates are too high to do business here. Not surprising - considering the multiplicity of tariffs and the Copyright Board's steadfast position of valuing each right separately, even though this may result in several substantial tariffs on the same transaction and an overall excessive rate.

Naturally, defending the Canadian position, are the heads of CRIA and Re:Sound. Is pricing yourself out of the market a good strategy? Self-inflicted wounds are not uncommon in the entertainment business - after all, the motion picture folks tried their best to ban the VCR. And the music industry came up with the not so brilliant idea of suing their most enthusiastic customers.

But excessive royalties that drive away legitimate services and drive users underground are bad for consumers and bad for musicians.

Time once again for Economics 100 and the lessons about price elasticity of demand?


1 comment:

  1. What other countries can you access Pandora in?