Arab Today, arab today pandora wins out in modest royalty rate hike
Last Updated : GMT 09:04:30
Arab Today, arab today
Arab Today, arab today

Pandora wins out in modest royalty rate hike

Arab Today, arab today

Arab Today, arab today Pandora wins out in modest royalty rate hike

Streaming-music service Pandora must pay 21 percent more in royalties in 2016
New York - AFP

A Internet radio leader Pandora was ordered Wednesday to pay 21 percent more in royalties to record labels, a modest increase that the company hoped would allow growth.

Industry watchers had been closely watching the US government decision for clues on Internet radio's future, as royalties account for nearly half of Pandora's expenses.

Judges from the Copyright Royalty Board said that Internet broadcasters such as Pandora next year will have to pay 17 cents for every 100 streams of a song on its advertising-backed free tier, up from 14 cents this year.

The rate, however, is well under the 25 cents sought by SoundExchange, the royalty-collection body established by major labels, which argued that digital music has become so mainstream that Pandora no longer needed any helping hand.

In a sign that Pandora was seen as coming out well, its share price soared more than 20 percent in after-hours trading following the decision.

Pandora had wanted the rate to be reduced to 11 cents, but voiced confidence that the decision would still allow investment toward a "thriving and vibrant future for music."

"This is a balanced rate that we can work with and grow from," Brian McAndrews, the California-based company's chief executive officer, said in a statement.

SoundExchange voiced disappointment, saying its proposed rate was in line with deals reached on the market.
"It's only fair that artists and record labels receive a market price when their music is used," it said in a statement.

"We believe the rates set by the (board) do not reflect a market price for music and will erode the value of music in our economy," it said.

SoundExchange repeated the industry's decades-long complaints that terrestrial-based US radio stations are not required to pay artists anything at all.

US law has considered such radio time to be free advertising for performers, although songwriters receive royalties.

- More investment for Pandora -


The judges also made the decision less momentous by setting the rate only for next year, not through 2020 as had been expected.

The board said it would set rates for subsequent years based on inflation and other factors.

The board slightly lowered to 22 cents per 100 streams the rate of royalties levied on Internet broadcasters' paid, subscription-based tiers, which accounts for a small portion of Pandora's business.

Pandora's exposure to outside-set rates contrasts with rivals such as Spotify and Apple Music that offer on-demand music and negotiate directly with record labels.

Pandora, which lets users select stations reminiscent of traditional radio, remains the largest streaming site in the United States, even though Swedish-based Spotify leads on a global level.

Pandora shares have taken a beating this year on fears for its long-term health, but the company has heartened markets late in the year by looking to diversify.

It recently signed a direct deal with major music publisher Warner/Chappell and bought fledgling on-demand streaming service Rdio.

Rdio, which had tried aggressive promotion strategies before being bought, announced Wednesday that it would cease operations on December 22 as it is incorporated into Pandora.

The radio site this week also unveiled a new function to personalize musical selections automatically for listeners, in line with a popular function on Spotify.

Pandora in October reached a settlement to pay $90 million for royalties of songs recorded before 1972, the date when US sound-recording copyright protections took effect on the national level.

 

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today pandora wins out in modest royalty rate hike Arab Today, arab today pandora wins out in modest royalty rate hike

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today pandora wins out in modest royalty rate hike Arab Today, arab today pandora wins out in modest royalty rate hike

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today EasyJet, Lufthansa among seven to bid

GMT 06:49 2017 Tuesday ,17 October

EasyJet, Lufthansa among seven to bid
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Fighters celebrate Raqa victory

GMT 06:07 2017 Wednesday ,18 October

Fighters celebrate Raqa victory
Arab Today, arab today Iran's Facebook shuts down

GMT 23:50 2017 Monday ,16 October

Iran's Facebook shuts down
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Sidem reveals plan to improve education

GMT 15:52 2017 Friday ,06 October

Sidem reveals plan to improve education
Arab Today, arab today British actress becomes fifth woman

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman
Arab Today, arab today Three killed, 360,000 without power

GMT 05:11 2017 Tuesday ,17 October

Three killed, 360,000 without power
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mercedes says recalls 400,000 UK cars

GMT 06:56 2017 Tuesday ,17 October

Mercedes says recalls 400,000 UK cars
Arab Today, arab today Britain's Vauxhall to cut 400 jobs

GMT 10:53 2017 Sunday ,15 October

Britain's Vauxhall to cut 400 jobs
Arab Today, arab today Dalal Abdel Aziz happy for “Seventh Neighbor”

GMT 09:31 2017 Monday ,16 October

Dalal Abdel Aziz happy for “Seventh Neighbor”
Arab Today, arab today India to close colonial-era military farms

GMT 18:49 2017 Monday ,16 October

India to close colonial-era military farms

GMT 12:33 2017 Friday ,13 October

Anoshka happy for reactions to her talk show

GMT 10:37 2017 Thursday ,12 October

Cara Delevingne accuses Weinstein

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 12:02 2017 Saturday ,14 October

Conservation cutbacks put Brazil's

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 23:42 2017 Monday ,16 October

Better Marriages Make

GMT 07:02 2017 Sunday ,15 October

German minister sparks uproar

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 03:59 2017 Sunday ,15 October

US mobile carriers Sprint, T-Mobile to merge

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday