Pandora now has deals with all three major publishers

Internet radio giant Pandora now has deals with all three major music publishers, as it announces its multi-year agreement with Warner/Chappell Music in the US.

The publishing deal allowed Warner/Chappell to negotiate improved performance royalties for its songwriters. Its roster includes Disturbed, Paramore, Kimbra (pictured) and Dr. Dre.

For Pandora, the deal gives it the ability to add new flexibility to the product over time, and will also see it benefit from greater rate certainty than its publishing agreements through US collection societies BMI and ASCAPin the US. According to the announcement, this means over time Pandora can be more flexible with its offerings – potentially allowing users more skips and pauses than currently offered.

2015 has been the year for direct licensing deals with rights holders in the US. As previously reported in TMN, Pandora’s deal with SONGS Music Publishing this month saw the publisher’s CEO Matt Pincuscomment on his favoured stance for equitable treatment of all publishers. “This agreement is a big step forward in a long conversation about fair and equitable compensation for all songwriters and publishers,” he said.

The deal with SONGS Music followed Pandora’s landmark deal with the globe’s biggest music publisher Sony/ATV. While the multi-year agreement is also only for the US, a Pandora spokesperson told TMN: “Pandora is always open to direct deals and has ongoing discussions with other potential publishing partners in an effort to find more win-win-win agreements.”

Pandora kicked off its direct licensing deal with Universal Music Publishing Group in the US in late 2013.

The new alliance with global publishers, and its recent acquisition of fellow streaming service Rdio, has added fuel to rumours Pandora will expand outside of the three territories in which it operates: Australia, America and New Zealand. It’s expected to re-enter the UK in mid to late 2016. It left that market in 2008, citing excessive streaming royalty rate demands.

Currently though, Pandora’s future growth currently rests in the hands of the three federal judges in Washington, who make up the US Copyright Royalty Board. The Board is now discussing its costs for the next five years and will rule on Wednesday in the US on the royalty rates that webcasters like Pandora will pay record companies.US collection agency SoundExchange has been pushing for a significant rate increase. Commercial broadcasters, Pandora and other streaming services want lower rates.