ASCAP and BMI have signed two separate multi-year licensing agreements with Pandora for their combined catalogues of more than 20 million musical works. Pandora claims that the new agreements will “modernise compensation in the US for ASCAP and BMI songwriters and publishers” and added that the deal would see it “benefit from greater rate certainty and the ability to add new flexibility to [our] product offering over time”.
Before the new deal, ASCAP was taking just 1.75% of Pandora’s yearly income. BMI took Pandora to the US rate courts and secured a 2.5% royalty rate for its clients. Pandora then appealed this ruling, a move that it has now dropped in the wake of the new arrangement with ASCAP and BMI.
“This agreement is good news for music fans and music creators, who are the heart and soul of ASCAP, and a sign of progress in our ongoing push for improved streaming payments for songwriters, composers and music publishers that reflect the immense value of our members’ creative contributions,” said ASCAP CEO Elizabeth Matthews.
“We’re extremely pleased to reach this deal with Pandora that benefits the songwriters, composers and publishers we are privileged to represent,” said Mike O’Neill, President and CEO, BMI “Not only is our new agreement comparable to the other direct deals in the marketplace, but it also allows us to amicably conclude our lengthy rate court litigation and focus on what drives each of our businesses – the music.”