In a ruling last week Pandora was ordered to pay ASCAP, a performance rights organization, 1.85% of its annual revenue. Pandora had hopes of a rate of 1.7% but, with ASCAP looking for a whopping 3.0%, the final agreed upon rate, which was at the top of their range, is being called a win.
Sony Music CEO Martin Bandier said, "This rate is a clear defeat for songwriters. This rate is woefully inadequate and further emphasizes of the need for reform in the rate court proceedings. Songwriters can't live in a world where streaming services only pay 1.85% of their revenue. This is a loss, and not something we can live with."
The songwriter’s loss is Pandora’s gain. And what did they do to celebrate this win? They decided to raise subscription prices.