A PYMNTS Company

US: Internet radio site Pandora makes bold move to compete with record labels

By  |  June 12, 2013

As Pandora works to fight against record labels and assure it can continue its online music-streaming services, the Internet radio company, which licenses music under the structure of Internet radio licenses, has bought a terrestrial FM radio station. According to reports, Pandora has bought KXMZ-FM, based in South Dakota, in order to assure it has access to the necessary music rights. The company is currently in a legal battle with the American Society of Composers, Authors and Publishers, which is allowing music artists to selectively choose whether to license songs or not. Pandora alleges that the “ASCAP has violated the terms of its antitrust consent decree with the Department of Justice.” As the case continues, Pandora is covering its bases with the radio buyout, according to reports, as the ASCAP tends to grant music rights to terrestrial radio stations.

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