Pandora is not betting its entire business plan on waiting for its music royalty rates to drop.
The Internet audio company continues to sign direct licensing deals with music publishers. The latest is with Warner/Chappell Music.
The companies say the contract creates business benefits for Pandora while modernizing compensation for Warner/Chappell Music and its U.S. songwriters. Financial details have not been disclosed.
While specific terms of the multi-year agreement are confidential, the companies say the deal allows Warner/Chappell Music to deliver improved performance royalties for its songwriters, while Pandora will benefit from greater rate certainty and the ability to add new flexibility to the company’s product offering over time.
Pandora has signed other direct music licensing deals with Merlin, Sony/ATV, SONGS Music Publishing and Naxos.
The royalties covered by Pandora’s direct deals with publishers are not impacted by royalties that are the subject of an expected Copyright Board Ruling due out Wednesday.
