ascap 1.7% fee "the wall street journal" says. far costlier performance fees paid to artists in music labels. pandora pays fully half of revenues to artists and labels. traditional radio plays diddly, zero. artists say pandora is ripping them off, billy joel, rihanna, 125 artists lobbied congress against a fee cut for pandora. they never rallied against zero payment from old line radio. pan dora pays $3 miilion a year to drake and little wayne. three million bucks to coldplay but to them it is not enough. they're artists. pan dora ould turn losses into profits, if the fee schedule merely matches of old radio. in the most recent quarter, pandora had a loss of less than 2 million bucks on revenue of $110 million. slash the fees, and that tiny bit of red ink suddenly moves well into the black. dave? sandra: of course the musicians say they're in it for love the music and they want to reach out to as many people as they can. david: right. >> pandora is helping them do that. david: exactly. they weren't paying on regular radio back in

type thing -- >> not to a private ascap thing.a system where people enter it voluntarily. >> what would your comment on that be? >> in a system like that, sure. ofy are proudly -- plenty collective rights organizations. privatetially remains otherwise the government determines prices. >> ok. comment.ssor wanted to ofwe have had a long history use of compulsory licenses when markets are not functioning well. often connected with new technology. it's not really beyond the pale that you move to some sort of compulsory license. you touched on the issue of how you pay the money out. the first instance people look at is the sampling thing. a different approach is to have theconsumer be able to pick society that rewards the artist in way they prefer. in effect, the consumer is becoming a patron of the arts. their mandated -- >> several operations doing several things -- >> you would pick. andwould go to madonna britney spears and another one would do it differently. you would be able to pick which one support the arts in the way you pref

adam: pandora is in a big copyright fight with the industry group known as ascap.t stake, dennis? >> the federal trial begins today against ascap for pandora, the american society of authors and bepublishers. it is seeking to reduce the fees it pay. pandora make as good point it, amounts to 4.3% of pandora revenue, but traditional radio pays ascap a 1.7% fee "the wall street journal" said the split is even worse and second far costlier fee, performance fee paid to artists and music labels. pandora paying fully half of all revenue to artists and labels but traditional radio pays diddly, zero. artists say pandora is ripping them off, billy joel and rihanna and 125 artists lobbied congest against a fee cut for pandora. never rallied for zero payments with old line radio. why does pandora pay up and radio doesn't? demonization of bits because make tech pay because it is new. pandora has losses and profits if the fee schedule matches old radio. pays $3 million a year to drake and little wayne and million bucks to coldplay but to the artists its not enough. the implicati