Pandora internet radio gets a second chance - for now

Saturday, Pandora founder Tim Westergren issued a "call to arms" to its listeners. He pleaded with fans and supporters of the popular music-streaming service to urge their State Representative to vote for the Webcaster Settlement Act of 2008. This Act would give web radio broadcasters more time to negotiate outrageous royalty fees that have caused some to go out of business and put many more under the same pressure.

A sigh of relief has been heard across the web, as that bill has been passed in the House. This means that Pandora gets a brief reprieve.

The NAB dropped their efforts to eliminate the bill after a Saturday night meeting with Rep. Howard Berman (D-Calif.) that addressed some of the groups concerns. Additionally, the NAB has expressed that they will not oppose the bill when it moves to the Senate. When NAB's efforts stopped, the bill was able to pass unanimously through the House according to CNET.

Hopefully, the flood of Pandora listeners that stepped to the plate through sites like SaveNetRadio.org helped Congress understand what was really at stake.

But there are rumors that NPR played a major role in saving internet radio by cutting some last minute deals with legislators to appease traditional broadcasters.

The Act will allow web radio broadcasters to negotiate with the music industry only while Congress is out of session. They have until February 15th to settle upon a new royalty rate. It looks like they are now closer than ever to reaching a rate that everyone can agree with it.

My fingers are crossed that Pandora has a long and healthy life!