There has got to be something we’re missing here.

Pandora, a website that utilizes the Music Genome Project, will stream you free, uninterrupted music that you will probably like, based on your stated musical preferences.

They had licensing agreements with various record labels that allowed them to generate these customized playlists so that each listener could have a unique radio station, playing only music that they will enjoy. But it looks like that’s no longer going to be the case.

This article in Ars Technica spells out the death of this beautiful experiment at the hands of the non-profit group SoundExchange.

A Word About SoundExchange

SoundExchange (SE) got its start as a royalites-collection division of the Recording Industry Association of America. In 2000, it was “spun-off” (whatever that means) to become an independent and non-profit organization.

I have a very hard time believing that an organization that was started by the RIAA has anything approaching artist or consumer interests at heart. The group is interested in collecting unpaid revenues, taking 10% (sometimes more) off the top, and then passively waiting for the artist to show up and claim their money.

Oh, and if the artist doesn’t show up for 3 years, SE just keeps the cash. Moving on.

What it means for you

As SE lobbies Congress to allow them to raise Internet radio royalties, sites like LastFM and Pandora will simply not be able to remain solvent. These companies provide free music to potential customers, with the option to purchase the songs they’re enjoying from places like Amazon or the iTunes Music Store. But they can’t possibly generate enough income to pay the new royalties.

Or, as SE seems to be implying, the free music sites aren’t doing enough to maximize revenue. Essentially, SE is saying: “You guys can stay in business if you want. Just make more money by increasing the amount/frequency of advertising. Then you can afford to pay us the outrageous, extortionist royalites we’re demanding.”

Why does the Music Industry seem so intent on pissing off their customers? It appears that if the RIAA or the MPAA could find a way to charge us a little bit every time we put in a CD or a DVD, they would. And the technology for that kind of thing isn’t impossible.

When that device comes out, the CD player that charges you 1/10 of a cent every time you play certain songs or an MP3 player that keeps track of how many times you listen to “We Want the Funk,” it will be presented to the people in pro-consumer language, masquerading as something advanced and cheap and simply fantastic.

I hate to say it, but Apple will probably be the first to make them. It will be after Steve Jobs is replaced, maybe 10 or 15 years from now. And it’s precisely because we trust Apple to not do something like that.

How To Stop Them

SE and the RIAA are lobbyists. They exert influence on elected representatives. If you want to neuter their ability to screw consumers, the only thing to do is write your Congressperson or Senator.

Don’t know who they are or how to reach them? Don’t worry. Project Vote Smart does.