MacNN | Pandora sues ASCAP in a bid to lower royalty rates
Mac News Network View: Standard | Headlines | Categorized | Slim
Mac News Network
Mac News iPod News Reviews Forums
 

Desktop Headlines
Pandora sues ASCAP in a bid to lower royalty rates
Monday, November 5, 2012 @ 7:14pm

In parallel with its attempt to lobby the US Congress for lower royalty rates on recordings, music streaming company Pandora Media is suing ASCAP, the organization that represents songwriters and composers, to seek lower licensing fees through 2015. Pandora is seeking a blanket licensing fee that would cover all songs, claiming that the current fees set a decade ago prevent profitability.



ASCAP negotiated a fee agreement with the Radio Music Licensing Committee, which represents iHeartRadio's operator Clear Channel and other stations. The conventional radio channels will pay 1.7 percent of gross revenue, with some offsets for advertising commissions. Pandora said in its suit that ASCAP refused to offer it the same conditions and rates. Pandora and ASCAP were unable to agree on licensing fees after more than year of talks. ASCAP said it had reached an "experimental" fee agreement in 2005 that lasted for five years. Pandora claimed that the license agreement it reached was "ill-suited and not reasonable.” Pandora’s co-founder, Tim Westergren, said in a statement in September that "last year, Pandora paid roughly 50 percent of its total revenue in royalties, more than six times the percentage paid by SiriusXM." For the six months that ended in July, Pandora reported that its net loss increased to $25.6 million from $8.6 million a year earlier, with revenue climbing 54 percent to $182 million.

Comments on this Article
Print Friendly Version
Email to a Friend
Add MacNN to Your RSS Feeds
Buy from the Apple Store


Related Stories:

Today's MacNN Stories:

  • Home Depot faces 44 civil lawsuits from breach, spent $43M on fallout - 5:21 PM EST
  • Skype 7.2 fixes bugs, improves chat readability - 3:54 PM EST
  • StealthGenie spyware app creator pleads guilty, fined $500,000 - 3:16 PM EST
  • Natalie Portman in talks to join Universal's Steve Jobs biopic - 2:45 PM EST
  • AT&T responds to FCC over 'frozen' fiber build, calls agency mistaken - 1:32 PM EST
  • Apple may lean heavily on Samsung for iPhone 6, Apple Watch parts - 1:15 PM EST
  • Briefly: Civilization: Beyond Earth OS X ships, new Geometry Wars 3 - 12:55 PM EST
  • Holiday Gift Guide: Audio gear - 12:33 PM EST
  • Union, Rev. Jackson push for better terms for Apple security guards - 11:34 AM EST
  • Pre-Black Friday Deals: 5TB HDD, iPads, 4k2k display, Steam sale - 11:22 AM EST
  • iPhone 5c production to halt in mid-2015, report says - 10:40 AM EST
  • Shareholder suit accuses GT Advanced of failing to disclose risks - 9:32 AM EST
  • Judge grants Apple post-judgement royalties from second Samsung trial - 9:24 AM EST
  • Review: iDrive cloud backup and sync service - 8:22 AM EST
  • Hands On: Snoopy's All Star Football (iOS) - 7:44 AM EST

    Today's iPodNN Stories:
  • Amazon cuts Fire Phone price a second time to $199 unlocked - 12:57 PM EST
  • Samsung plans $2B share buyback, sale of defense and chemical assets - 11:22 AM EST
  • Sony reportedly working on smartwatch with e-paper screen, band - 8:53 AM EST
  • Analysis: Sony's PlayStation Vita settlement could cost up to $28.7M - 7:25 AM EST
  • Samsung considering leadership change for declining mobile division - 1:13 AM EST
  • No comments posted on this story yet. Please post yours.
    Your Comments
    In order to post comments, you must be a registered member of the MacNN Forums and logged in. Please login with your MacNN Forums username and password.

    MacNN Forums Login:

    MacNN Forums Password:

    Not a member of the MacNN forums? Register now for free.