Pandora (P) May Payout More in Royalties as One Outfit Secures Better Deal
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Pandora (NYSE: P) may see its costs rise in the future as payments to at least one content outfit will increase.
According to the NY Post, Pandora will start paying about 25 percent more in royalties to Sony/ATV. The news comes at a time when Pandora has been lobbying for lower content costs, causing a stir throughout the music industry.
Sony/ATV secured better leverage after pulling in digital rights from two associations, which were effective January 1st. The company is a joint venture between Sony Corp (NYSE: SNE) and the Michael Jackson estate.
Pandora, with 60 million users, didn't comment on the headlines, notes the Post.
Other firms might also start negotiating deals other than those struck by BMI and ASCAP. Royalty agencies collect about four percent of Pandora's gross revs, which amounted to $274.3 million last year.
Shares are flat in early trading Thursday.
According to the NY Post, Pandora will start paying about 25 percent more in royalties to Sony/ATV. The news comes at a time when Pandora has been lobbying for lower content costs, causing a stir throughout the music industry.
Sony/ATV secured better leverage after pulling in digital rights from two associations, which were effective January 1st. The company is a joint venture between Sony Corp (NYSE: SNE) and the Michael Jackson estate.
Pandora, with 60 million users, didn't comment on the headlines, notes the Post.
Other firms might also start negotiating deals other than those struck by BMI and ASCAP. Royalty agencies collect about four percent of Pandora's gross revs, which amounted to $274.3 million last year.
Shares are flat in early trading Thursday.
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