Just last month Pandora was in Washington asking for lower rates. Now comes a report that they've agreed to pay more. Music publisher Sony/ATV has independently negotiated a 25% increase in royalties from Pandora, according to the New York Post. The result is likely to be more publishers demanding higher rates.
Pandora has repeatedly argued that it can not contniue to pay high royalty rates and survive.
The majority of royalties paid by the music streamer go to SoundExchange on behalf of artists and record labels. A much smaller share, estimated at 4% of Pandora's gross revenue of $275 million, goes to ASCAP, BMI and now increasingly direct to publishers like Sony/ATV on behalf of copyright holders.