According to new reports, Pandora is preparing to expand internationally and has already tried to acquire rights to play songs outside of the U.S.
The company has targeted the UK as an important expansion point, and the entire move makes sense as Pandora has struggled recently with growth in the U.S.
Pandora's stock has fallen nearly 50 percent since September, following reports that rivals were taking major market share and over the costs of a legal settlement with the RIAA over royalties for tracks written before 1972. The settlement, as well as a deal to stop seeking lower royalty rates, seems to be working for Pandora as the major record labels finally seem open to working with them, a key motion for any type of expansion.
Any future plans, however, are likely on hold until the end of the year when the Copyright Royalty Board sets new rates. It is rumored that the RIAA wants Pandora to pay 78 percent of their entire revenue in royalties, compared to the current 44 percent they do now.
Source:
BBG
Pandora's stock has fallen nearly 50 percent since September, following reports that rivals were taking major market share and over the costs of a legal settlement with the RIAA over royalties for tracks written before 1972. The settlement, as well as a deal to stop seeking lower royalty rates, seems to be working for Pandora as the major record labels finally seem open to working with them, a key motion for any type of expansion.
Any future plans, however, are likely on hold until the end of the year when the Copyright Royalty Board sets new rates. It is rumored that the RIAA wants Pandora to pay 78 percent of their entire revenue in royalties, compared to the current 44 percent they do now.
Source:
BBG
