Pandora Buys KXMZ/Rapid City, SD To Get Better Music Licensing Terms
June 11, 2013 at 2:45 PM (PT)
CONNOISSEUR MEDIA is selling Hot AC KXMZ (HITS 102.7)/BOX ELDER-RAPID CITY, SD to PANDORA for an undisclosed price.
The deal offers PANDORA the ability, it believes, to be eligible for lower broadcaster rates on royalty fees as covered in the RADIO MUSIC LICENSING COMMITTEE's settlement with ASCAP that allows broadcasters to offer separate online-only streams covered by the lower rates, as iHEARTRADIO enjoys for its non-customizable streams.
In an op-ed piece in THE HILL, PANDORA Assistant General Counsel CHRISTOPHER HARRISON writes that the company is filing a motion in its legal proceedings against ASCAP alleging "discriminatory treatment of PANDORA and other Internet radio companies by ASCAP and their publishing industry members" by offering higher fees and worse terms to it than to iHEARTRADIO, as well as other objections. He alleges that ASCAP and an unnamed major publisher refused to provide a list of withdrawn tracks to PANDORA and that other publishers then withdrew their catalogs from ASCAP with respect to PANDORA.
"This acquisition allows us to qualify for the same RMLC license under the same terms as our competitors," adds HARRISON. "While this might seem like an unexpected move for PANDORA, it makes sense even beyond the licensing parity. PANDORA excels in personalizing discovery and terrestrial radio is experienced in integrating with a local community. We look forward to broadcasting our personalized experience to the community in RAPID CITY, an area where over 42,000 residents already use PANDORA. And we will apply PANDORA’s insights about listening habits to program music that accurately reflects local listeners’ evolving tastes."