Pandora signs direct licensing deal with Downtown Music Publishing

Pandora is at it again.

The streaming radio service is laying the groundwork for the launch of an interactive streaming service using the assets it recently bought from Rdio.

To that end, it’s recently struck wide-ranging direct deals with Warner/Chappell, Sony/ATV and SONGS Music Publishing for the US market – adding to existing direct deals with BMG and Universal Music Publishing.

These agreements have seen the publishers given better royalty rates by the platform than those achieved by BMI or ASCAP.

In return, the publishers have given Pandora more flexible rights including the freedom to utlise their music on an on-demand streaming service.

Now Pandora has scored another new multi-year US deal, this time with Downtown Music Publishing.

Downtown is one of the fastest-growing publishers in the US with offices in New York, Nashville, Los Angeles, London, and Amsterdam.

Offering both admin and services to writers, it manages a catalogue including The Beatles, John Lennon & Yoko Ono, Cy Coleman, The Kinks, Randy Newman, Hans Zimmer, Mötley Crüe, Jewel, Neon Trees, and One Direction.

“This deal with pandora serves as a reminder that songwriter royalties are best negotiated in a free market.”

Justin Kalifowitz, Downtown

“This agreement with Pandora is a milestone in our on-going mission to deliver equitable, accurate and timely payments for our songwriters,” said Downtown founder and CEO, Justin Kalifowitz (pictured).

“It also serves as a reminder that songwriter royalties are best negotiated in a free market. We’re looking forward to working more closely with Pandora in optimizing this agreement and know that, in the words of Cy Coleman, the best is yet to come!”

“I am excited for our partnership with Downtown Music Publishing,” said Brian McAndrews, chief executive officer at Pandora.

“Pandora is committed to bringing long-term growth to the music business, and working with the talented and diverse songwriters on Downtown Music Publishing’s roster will contribute to that.”

Pandora last week received the news it had been waiting for: the new US webcasting rates for non-interactive streams from the Copyright Royalty Board.

The CRB approved a $0.0017 per-stream rate for ad-funded services – $0.0003 more per stream than Pandora is currently paying to labels and artists.

However, Pandora was previously paying $0.0025 per stream for those on its subscription tier. As the result of a separate CRB ruling, this falls to $0.0022 per stream.

Subscribers only make up around 5% of Pandora’s 78m audience, but claim a more significant chunk of payouts.

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