By Jonathan Binder, CNN
Follow on Twitter: @jbinder
Editor's Note: Listen to the full story in our player above, and join the conversation in our comments section below.
(CNN) – Pandora Radio is a pioneer in putting music online. Pandora allows people to pull up endless music on their computers and take it on the go with a smart phone.
So why are they investing in a small South Dakota radio?
The internet radio giant claims it is paying too much in music licensing fees from companies like ASCAP and BMI. Not only did Pandora file suite against ASCAP, the company bought KXMZ in South Dakota because of a loophole. Companies with terrestrial radio pay less in licensing fees.
Glenn Peoples, Senior Editorial analyst at Billboard magazine, helps sum up their case:
[1:03] "Pandora's argument is that is that they shouldn't be penalized just because they are a stand alone internet radio service. They want the ASCAP fees that are available to stations that are a part of this radio music license committee settlement."
Subscribe to this podcast on iTunes or Stitcher. And listen to CNN Soundwaves on our SoundCloud page.
Are you ignorant or just plain dumb?
I think a little from column A and a little from column B
Soundwaves is the online home of the CNN Radio network. If you like listening to news and stories you have come to the right place. Listen and comment here and take us with you using Soundcloud, Stitcher or iTunes. Send us your feedback.
Get every new post delivered to your Inbox.
Join 127 other followers