Home Music Publishing Why is Pandora Buying a Terrestrial Radio Station?

Why is Pandora Buying a Terrestrial Radio Station?



If you go to the FCC’ s website, there it is in bold letters, “FCC Grants Petition for Declaratory Ruling of Pandora Radio LLC.”  All that aforementioned statement basically means is that Pandora is now the proud owner of a radio station in South Dakota that can broadcast on the FM dial and can take full advantage of paying lower broadcast radio royalties.

Technically Rapid City, South Dakota’s KXMZ was purchased by Pandora Media back in 2013 but the juggernaut streaming service company wasn’t able to broadcast via FM due to a Communications Act law preventing broadcast radio stations from being owned by foreign entities.

This move was also being heavily blocked by performance rights organizations like ascap in attempt to protect songwriters from being short changed by Pandora, which will now look to pay the lower royalty rates offered by ASCAP to companies which own broadcast radio stations and their digital subsidiaries.

While Pandora currently pays the PRO 1.85 percent of revenue, they will now be able to take advantage of the 1.7 percent of revenue offered to broadcast radio platforms.

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  1. Thanks for the article. For those who live outside US and want to access Pandora radio, you can use UnoTelly as I do to get around the geo block.

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