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Pandora has signed US-only direct licensing agreements for recorded music with Universal Music Group, Sony Music, Merlin and The Orchard, in addition to ‘over 30 other independent labels and distributors’.
You may have noticed a big omission there: no Warner.
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Previously Pandora as non-interactive service paid SoundExchange royalties and then SoundExchange paid master right holders (50%), recording artists (45%) and session musicans (5%).
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The new Pandora deals leave the way open for the company to announce its new on-demand Spotify rival, expected to be unveiled this week.
MBW understands that Pandora is set to announce three tiers to its new service.
One, at $9.99 per month, will directly rival Spotify and Apple Music with an unlimited on-demand service.
Another, at $5 per month, will offer a restricted on-demand service – with a limited cache ‘wallet’ which only allows users to soft-download a small number of tracks (if any).
However, Pandora’s free tier may also get an upgrade, with added ‘skips’.
If this is true, then all parties may be able to make the case that Pandora is no longer a ‘non-interactive service’.
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In fact, Pandora has 78m active users (US, Australia, New Zeland); Spotify has 100m
