It's easy to find articles for (or by) members of the music industry arguing why Pandora is bad for the music business. Billboard's Glenn Peoples wrote last week on why a healthy Pandora is good for the biz.
Peoples points to the webcaster's recent stock price, which, as you know, doesn't directly reflect the viability of a business, just what investors believe its chances are.
"The gain in share price reflects the fact that certain elements important to the music industry’s future — mobile growth, the maturing of mobile advertising and adoption of digital services — are falling into place," he explained. "The rise in Pandora's share price reflects the fact the company has taken measured steps that should lead to profitability."
So, here's how he sees a successful Pandora helping the industry. First, Peoples maintains there will be a small handful of very successful winners in the space, and Pandora may very likely be the first to claim one of those slots.
That's important because a solidly successful player will attract new competitors to grow the space. This will bring in more advertising spending, and more revenue for copyright owners.
Finally -- for performers and labels -- the more listening taking place on digital services and the less on U.S. broadcast radio, the better. As broadcasters in this country don't pay for the use of recordings on the air, labels and performers will be better off if listening migrates online.
Read the article in Billboard here.