Internet Radio in Trouble

I am a big fan of internet radio. I listen to Pandora almost everyday because I love the way they classify and categorize their music. Instead of heavy handed labels from journalists or casual fans they do listeners a great service by actually analyzing the music and letting the music dictate its classification. If I am a fan of Rod Stewart's "Hot Legs" I can search for this song and Pandora will create a radio station with songs that are similar to "Hot Legs" no matter if the song comes from as an unlikely a source as Bob Seeger or Great White. This is really brilliant and much better than its most common rival last.fm.

Internet radio sites like Pandora may become a thing of the past though as the recording industry starts demanding higher royalties for the use of their music. The industry sees internet radio as a way for them to recoup the money they are losing through album sales. It is unfortunate that they would try to hit these quality resources for the sole purpose of making up for a change in industry. They may not even understand how internet radio works but what they do understand is a chance to make a buck. Why don't they create their own internet radio and provide the quality of a Pandora. That would require creativity and ingenuity. Something that will be lacking if these internet stations are priced out of the game.