Pandora has been on a drive to sign expanded rights deals with publishers recently – with the likes of Sony/ATV, Warner/Chappell and Downtown Music Publishing putting pen to paper on direct agreements that will likely enable the US firm to launch its own interactive streaming service to rival the likes of Spotify and Apple Music.
Now ASCAP and BMI, the biggest US Performance Rights Organizations (PROs), have signed two separate multi-year licensing agreements with Pandora for their combined catalogues of more than 20 million musical works.
Like its recent glut of publisher deals, Pandora claims that the new agreements will “modernise compensation in the US for ASCAP and BMI songwriters and publishers”.
You can probably glean from those words that Pandora has agreed to up the amount it pays both organisations from its annual revenues.
Pandora added that the deal would see it “benefit from greater rate certainty and the ability to add new flexibility to [our] product offering over time”.
Before the new deal, ASCAP was taking just 1.75% of Pandora’s yearly income.
“These collaborative efforts, with our recent direct deals with music publishers, demonstrate our progress in working together to grow the music ecosystem.”
Brian McAndrews, Pandora
BMI’s relationship with Pandora, meanwhile, was a little more complicated.
In May last year, the PRO fought Pandora in the US rate courts and won – securing a 2.5% royalty rate for its clients.
Pandora then appealed this ruling, a move that it has now dropped in the wake of the refreshed deals with ASCAP and BMI.
“This agreement is good news for music fans and music creators, who are the heart and soul of ASCAP, and a sign of progress in our ongoing push for improved streaming payments for songwriters, composers and music publishers that reflect the immense value of our members’ creative contributions,” said ASCAP CEO Elizabeth Matthews.
“We’re extremely pleased to reach this deal with Pandora that benefits the songwriters, composers and publishers we are privileged to represent,” said Mike O’Neill, President and CEO, BMI (pictured). “Not only is our new agreement comparable to the other direct deals in the marketplace, but it also allows us to amicably conclude our lengthy rate court litigation and focus on what drives each of our businesses – the music.”
“At Pandora we are delivering on our commitment to ensure that music thrives,” said Brian McAndrews, chief executive officer of Pandora.
“These collaborative efforts with the leading Performance Rights Organizations, as well as our recent direct deals with several music publishers demonstrate our progress in working together to grow the music ecosystem.”
Music Business Worldwide
