Now Owning KXMZ/Rapid City, Pandora Asks Federal Rate Court For A Lower BMI Fee
BMI Disagrees Rate Should Apply To Webcaster
July 1, 2015 at 1:18 PM (PT)
PANDORA has formally asked the Federal Rate Court to re-consider its decision that set the webcaster's BMI licensing rate at 2.5% of revenue. The basis for the request? The company's purchase of KXMZ (HITS 102.7)/RAPID CITY, SD from CONNOISSEUR MEDIA (NET NEWS 6/2).
PANDORA Dir./Public Affairs DAVE GRIMALDI explained to ALL ACCESS that the purchase of the terrestrial station was, "one of the motivations," to get the preferred royalty rate negotiated by the RADIO MUSIC LICENSE COMMITTEE, but it was also, "really great synergies."
In the paperwork, PANDORA is asking the 2nd Circuit for the cheaper rate to take effect to when it began the process of buying KXMZ two years ago.
GRIMALDI said that should the decision in the procedural trial from Judge STANTON not go their way, the company, "would appeal the decision -- which could take eight months to a year."
BMI responded, telling ALL ACCESS, "“We do not believe that PANDORA’s ownership of a small radio station in one of the smallest markets in the U.S. entitles the company to apply BMI’s broadcast radio rate to its enormous and completely unrelated digital music service. This is yet another unfortunate attempt by PANDORA to deny songwriters the fair value for their creative work.”