Report: Pandora, Universal Music Publishing Group Reach Short-Term Direct Deal
July 3, 2013 at 4:58 AM (PT)
A report at BILLBOARD.BIZ says that PANDORA has reached a short-term royalty deal with UNIVERSAL MUSIC PUBLISHING GROUP while it continues to try to lower its music publishing rates.
"We can confirm that UMPG has worked out an arrangement with PANDORA that we believe is in the best interest of our writers while ensuring PANDORA access to our music through the end of the year, " a UMPG spokesperson told BILLBOARD. The deal, which reportedly is at a higher rate than previous deals, is subject to ASCAP's expected rate court ruling on PANDORA's motion arguing against publishers' ability to cut direct deals versus taking whatever rate the court sets under a consent decree. The deal with UMPG avoids potential liability if the ASCAP ruling goes against PANDORA.
BILLBOARD is also citing sources saying that WARNER/CHAPPELL is delaying its withdraw of digital rights from PANDORA until JANUARY 1st, 2014, while BMG CHRYSALIS has withdrawn its digital rights. SONY/ATV, including the EMI MUSIC PUBLISHING catalog, earlier withdrew its digital rights and arranged a deal with PANDORA at 5% of revenue.
"We believe all parties are awaiting the ruling of the court on our motions," said a PANDORA spokesperson.