Pandora Explains How It Pays Its Royalty Fees

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In a blog post appearing at Medium and distributed by Pandora, the company’s Music Insights and Analytics chief, Glenn Peoples, notes that with the streaming audio company’s long-awaited rollout of its on-demand, subscription-based Pandora Premium, there are three tiers and, thus, three ways for artists and labels to connect with listeners and earn royalties. There are also a few different ways royalties get to artists and labels, and Peoples explains just how Sirius XM and AM and FM radio differ from Pandora.


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By Glenn Peoples

Now that Pandora Premium has been given a broad rollout, people in the music [and broadcast] industry may be wondering how Pandora’s royalties are being paid to artists and labels.
The direct licensing agreements Pandora has reached with labels has brought some changes to how royalties are paid for all three tiers: the familiar ad-supported radio service; Pandora Plus, an update of the ad-free, subscription radio tier Pandora One; and the new Premium tier.
The short version is all parties get paid regardless of the tier or the type of license. Not all royalties take the same route to their end recipient, however, and some of those routes have changed recently.


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