Pandora’s royalty rates will increase significantly in 2016
Pandora has seen their fair share of ups and downs during the second half of 2015. The streaming giant made some exciting acquisitions to move into the live space with Ticketfly and expand into on-demand streaming with Rdio’s assets. On the other hand, though, the company’s shares fell drastically in the third quarter when they posted a loss, and 2016 may pose to be an uphill battle with a new ruling to increase in royalty rates for Internet radio.
Unlike on-demand services like Spotify and Apple Music, Pandora’s royalty rates are determined in Washington DC by the Copyright Royalty Board since the company is a radio service. The previous royalty rate stood at 14 cents per 100 streams, but the Copyright Royalty Board ruled the rate will increase to 17 cents per 100 streams in 2016 through 2020. However, there is hope as this rate can change due to price fluctuations. Hopefully Pandora’s newest ventures will be able to help the company turn a profit to counteract this rate change.
H/T: The Verge