Penny Wise, Pound Foolish
Thursday, August 21st, 2008Or cutting off your nose to spite your face. Or whatever other similar cliche you prefer.
Pandora is a terrific service, and CEO Tim Westergren has been on the front lines of fighting for its survival for some time. This week, warning sirens are sounding again about the potential death of Pandora.
This is exactly the type of new business model where some agreeable middle ground between Pandora and the royalty collectors needs to be found. Pandora isn’t like a CD retailer, or even like iTunes. It’s an entity that’s fundamentally about the process of discovering music, not purchasing music. It helps build one’s interest in previously unknown artists, in turn facilitating music sales.
The more popular Pandora gets, the better it is for the music industry as a whole. It’s time for everyone looking for their piece of the Pandora pie to smarten up and look at the long-term bigger picture.