Internet radio service Pandora says it has reached a direct licensing deal for songwriting rights with Sony/ATV music publishing, the largest music publisher in the world.
The deal, which will see Pandora Media Inc. pay more to Sony/ATV to play the songs of artists like Bob Dylan, Lady Gaga and Pharrell Williams, eliminates some uncertainty over how much it would have to pay in the future. A review begun last summer by the Department of Justice into publishing rights societies ASCAP and BMI could have affected its bargaining power with publishers.
The move follows several steps Pandora has taken recently to make amends with the music industry over contested rates it pays to play music.
Its shares rose 92 cents, or 7.8 percent, to $12.70 in midday trading Thursday.
SOURCE: The Associated Press