Wednesday, August 6, 2014

Pandora Strikes Its First Deal With Artists

On August 6th 2014, internet radio service, Pandora, announced that it had struck its first ever deal directly with artists. The deal was signed with Merlin, an independent label group that represents artists such as, Arcade Fire, Bad Religion, and Lenny Kravitz.

As part of the deal, Merlin represented artists could get more rotations and see their songs placed earlier in playlists where their songs fit. Those artist will also get access to Pandora's data which can help them make decisions about where to tour, who to tour with, what their concert set list should be, and what song or songs they should release next.

This deal will help Pandora improve its relationship with artist who have been complaining that Pandora's royalty payments to artists for streaming services are too low. Merlin CEO, Charles Caldas said that the deal is an incredible opportunity for Merlin artists to get their music in front of a larger audience.

The deal covers performance royalties and not songwriter royalties which are collected by performing rights organizations such as ASCAP (American Society of Authors and Composers) and BMI (Broadcast Music INC.). It remains to be seen as to how this deal will effect those entities.

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