Pandora strikes direct deal with Universal Music Publishing

Pandora has brokered a direct deal with Universal Music Publishing for publishing royalty rates – despite filing a motion in the ASCAP rate court in an attempt to block publishers from doing direct licensing deals with platforms.

Billboard reports that the UMPG deal is short-term and represents the highest rate Pandora has ever paid in publishing fees.

The motion filed by Pandora is aimed at the likes of Universal, BMG Chrysalis and Warner/Chappell, which have filed notice of withdrawing certain ‘New Media’ rights believing that direct deals with music services will be more lucrative than remaining under ASCAP.

Pandora is asking the judge to rule whether publishers are actually obligated to keep their digital rights at ASCAP for the purposes of Pandora licensing.

But now a UMPG spokesperson has said: “We can confirm that UMPG has worked out an arrangement with Pandora that we believe is in the best interest of our writers while ensuring Pandora access to our music through the end of the year.”

It’s been suggested that Pandora has done the Universal to protect itself in the event of the ASCAP rates court ruling in favour of the publishers who have withdrawn digital rights. In such an instance, Pandora would be carrying unlicensed works on its platform without direct deals.

Source: Music Week