Pandora lives

Pandora, my favorite online radio station, among others are probably happy now that they've worked out a deal with the labels to stream music online. Many thought that online radio would be dead, facing a 19 cent per track fee in royalties.

The fee isn't quite that high, but it is now high enough that Pandora will limit free usage to 40 hours per month. I would expect others, such as last.fm to follow suit.

Anything over that will cost an additional 99 cents for the rest of the month, which is basically nothing. But as Chris Anderson says in Free, there are really only two prices: Free and everything else. So I am not quite sure how Pandora will fair. They claim that this will impact only 10% of their users.