Friday, July 31st13.8°C
26264
26033

Pandora cuts first-ever direct deal with artists in comprehensive agreement with Merlin

LOS ANGELES, Calif. - Internet radio leader Pandora has come to its first-ever direct licensing deal with artists, a wide-ranging agreement with independent label group Merlin that both said would mean higher payments to artists and more play for them on Pandora stations.

That means Merlin-represented artists like Arcade Fire, Bad Religion and Lenny Kravitz could get more rotations as their representatives will be able to lobby Pandora to place their songs earlier in playlists where they fit.

Artists will also get access to Pandora data for the first time, enabling them to make informed decisions about where to tour, who to tour with, what their concert set list should be and what songs they might release next. They will also have tools to directly communicate with fans on Pandora.

For Pandora Media Inc., the move helps improve relations with artists, who have complained that royalties on digital streaming services are too low, especially as CD and digital download sales decline. It's a departure from its current business model, where it relies on government rate-setting bodies like the Copyright Royalty Board to determine how much it pays artists.

"In a world where it's very difficult to get onto terrestrial radio, a deal like this gives us an incredible opportunity to get our music in front of an enormous amount of people," said Merlin CEO Charles Caldas in an interview. "The data that comes out of the back of this should also enhance our business."

Brian McAndrews, CEO of Oakland, California-based Pandora, said the deal would not have a "major impact on costs" — a concern of investors that have pushed Pandora shares down some 38 per cent from their high of $40.44 in early March.

He also said he was "very excited" about the company's first deal with a record label group and said he hoped that others would follow.

"We are open to other deals and we feel we can find a win-win-win for labels, artists and Pandora," he said in an interview.

Merlin, representing more than 20,000 independent labels, commands about a 10 per cent share of music consumption worldwide and revenue collected from streaming platforms doubled to $89 million in the year through April.

The deal covers royalties for performances, not songwriting rights, and it comes as the Department of Justice is re-examining Pandora's right to automatically license song rights from publishing societies like the American Society of Composers, Authors and Publishers (ASCAP) and Broadcast Music Inc. (BMI).

That process was put in place in 1941 as a counter to anti-competitive behaviour by publishers, who say that the market dynamics have changed and they should have the right to negotiate songwriting royalties without the floor on rates set by the publishing societies.

The Canadian Press


Read more Business News




Recent Trending




Today's Market
S&P TSX14382.78+80.98
S&P CDNX588.30+3.54
DJIA17745.98-5.41
Nasdaq5128.79+17.05
S&P 5002108.63+0.06
CDN Dollar0.7666-0.0027
Gold1096.90+0.60
Oil48.28-0.63
Lumber254.10+2.30
Natural Gas2.883+0.062

 
Okanagan Companies
Pacific Safety0.18+0.00
Knighthawk0.010.00
QHR Technologies Inc1.42+0.02
Cantex0.04-0.01
Anavex Life Sciences0.80+0.01
Metalex Ventures0.045-0.005
Russel Metals19.45+0.24
Copper Mountain Mining0.78-0.07
Colorado Resources0.06+0.00
ReliaBrand Inc0.0045-0.0022
Sunrise Resources Ltd0.03+0.00
Mission Ready Services0.14-0.01
Decisive Dividend Corp2.50-0.08

 





FEATURED Property
22228221888 Capistrano Drive
4 bedrooms 3 baths
$949,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Chasing ducks

Photo: Thinkstock.comWhen businessmen tell me that being low priced is the only way to stay in business, I am skeptical. Price is the simplest way for a consumer to compare and is overused as the basi...


Taking care of business

Photo: Thinkstock.comRetirement as a goal has changed a lot over the years. There was a time, it was the only goal. You’d punch the clock and count the years until you could stop punching that t...


Income from home equity

Photo: Thinkstock.comWhen retirement funds run low, seniors often ask if tapping into the equity in their home is the right way to retain financial independence. To see if this option might be a good ...

_



26509




Member of BC Press Council


26465