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Pandora’s 2016 music royalties to rise 12% - Venture Insights

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Pandora’s 2016 music royalties to rise 12%

PublisherEnders Analysis.
Publish Date December 18, 2015
Sector Internet, Media, Mobile, Mobile Apps, Music and Radio, Technology.
Company Apple, Spotify, Vivendi.

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The Copyright Royalty Board (CRB) delivered its Web IV ruling on statutory SoundExchange licensing rates for webcasters for 2016-20, raising Pandora’s total music royalty costs by a forecast 12% in 2016.

Had the CRB sided with SoundExchange, rates for Pandora’s non-subscription tier would have shot up 79%, leaving the company floundering in a sea of red ink.

Nevertheless, these increased licensing costs for Pandora over 2016-20 will postpone the moment when the company attains net profitability.