Pandora reaches accords with music songwriting groups
Pandora Media Inc., the world's largest online radio service, reached licensing agreements with Ascap and BMI, resolving disagreements over rates and cementing its access to more than 20 million songs for several years.
As part of the accord, Pandora will drop its appeal of a US court order in May related to how much it pays BMI, according to a statement Tuesday. Terms of the long-term agreements, weren't disclosed. Ascap, short for the American Society of Composers, Authors, and Publishers, and BMI, or Broadcast Music Inc., represent songwriters, composers, and music publishers, negotiating rates and distributing fees when music is performed in public.
Detente with the two organizations furthers Pandora's quest to to lock up long-term rights and rates for music, providing greater stability for investors and improving its relationship with the music industry. The company will need to negotiate direct deals with music publishers and record labels in order to create an on-demand subscription service, similar to Spotify Ltd.'s, and to expand overseas.
Pandora signed direct deals with Sony/ATV Music Publishing, Warner/Chappell Music Inc., and SONGS Music Publishing over the past few months.