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:

  • UAE Apple Store to be 'biggest in the world,' source claims - 9:58 AM EST
  • Netflix signs interconnectivity deal with Time Warner Cable - 9:53 AM EST
  • LG takes on Sonos with Music Flow wireless multi-room audio system - 9:19 AM EST
  • Final Cut updates to 10.1.3, gets matching Motion, Compressor patches - 9:09 AM EST
  • New malware stealing advertising revenue from jailbroken iOS devices - 9:08 AM EST
  • Parallels Desktop 10 launches with Yosemite support, speed boosts - 8:22 AM EST
  • Brazilian judge orders deletion of Secret app from mobile devices - 7:30 AM EST
  • Review: Life n Soul 8 Driver Bluetooth headphones - 2:01 AM EST

    Today's iPodNN Stories:
  • Twitter will remove images of deceased by family member requests - 6:12 AM EST
  • Briefly: Sharp Aquos Crystal on Sprint, Sony Xperia M2 Aqua launch - 5:20 AM EST
  • TV broadcasters file petition against FCC over 2015 spectrum auction - 5:05 PM EST
  • Steve Ballmer departs from Microsoft board after 34 years of service - 4:41 PM EST
  • EA adds PS4 CoachGlass, but drops Madden 15 demo, limits early access - 4:00 PM 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.