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CD. Moreover, it allows for song identification on the radio dial, instant weather reports, and
location advertising (e.g., drive by a McDonald’s and you immediately hear a McDonald’s
ad).
• Explore the influence of online radio stations that allow users to create tailor–made stations
(e.g., Pandora, Last.fm, Slacker) based on their musical tastes and listening habits. Ask
students if they use these services. If so, have they discovered new artists or listened to more
diverse radio content because of Internet radio stations? Also discuss Internet-streaming
radio in conjunction with your students’ music-purchasing habits. Have students downloaded
songs they heard and liked on an Internet radio site?
• It might be helpful to visit a digital radio website like Pandora.com or Live365.com (or have
your students visit these sites if they haven’t already) to demonstrate how users access digital
radio. Pandora allows users to create their own customized radio stations: users enter songs
they like, and Pandora adds other music that is categorized similarly. In 2009, Pandora and
other web-streaming radio ventures narrowly avoided a big financial hit that would have
made it too expensive for many of them to survive. Earlier, the U.S. Copyright Royalty
Board had decided that it would no longer allow these sites to pay a percentage of revenue in
performance royalties. Instead, the board proposed that webcasters would be charged each
time a user listened to a song, representing a rate increase of 300 to 1200 percent, and that
there would also be a minimum charge of $500 per radio station. These changes would have
been disastrous for Pandora because it allows users to create their own “radio stations.”
Thankfully, in June 2009, Congress passed the Webcaster Settlement Act. The act enabled
Internet stations to negotiate royalty fees directly with the music industry, presumably at
rates webcasters could more easily afford. In 2016, the U.S. Copyright Royalty Board created