Pandora Signs Direct Licensing Deal With SONGS Music Publishing
While lawsuits, congressional action and government regulators may get all the headlines, Pandora's effort to direct license a greater portion of its catalog continues to gain steam providing shareholders a rate certainty that courts and governments never will.
Pandora (NYSE:P) and SONGS Music Publishing today announced a multi-year licensing agreement. While the details of the direct publishing deal were not disclosed, both companies say that the agreement creates business benefits for Pandora, while equalizing compensation for SONGS' U.S. songwriters, which include The Weeknd, Lorde, Diplo, and DJ Mustard.
Previous Pandora direct deals include Sony/ATV and Merlin.
Today's deal, says SONGS , allows it to deliver improved performance royalties for songwriters. Pandora will benefit from greater rate certainty and the ability to add new flexibility to its product offering over time. The public performance royalties Pandora pays to rights holders of master recordings are not affected by the agreement.
"Now is the time to move past the over-regulation of songwriter rights and towards a market-based approach to streaming music,” said SONGS founder and CEO Matt Pincus. “This agreement is a big step forward in a long conversation about fair and equitable compensation for all songwriters and publishers."