Pandora Stock Jumps After Copyright Judges Rule On Streaming Rates For Internet Music Services
OAKLAND (CBS/AP) -- A panel of copyright judges has raised the amount Internet music streaming services like Pandora must pay to record labels next year and beyond, potentially easing concerns artists have about being paid fairly for such streams.
The Copyright Royalty Board on Wednesday raised the rate for free streaming services to 17 cents per hundred plays, up from 14 cents. For paid subscription services, the rate fell to 22 cents from 25 cents. Both rates will rise with inflation through 2020.
Pandora CEO Brian McAndrews said in a statement the increase was "balanced" and one it "can work with and grow from."
Pandora says its blended rate will rise 15 percent.
Pandora Media Inc. shares jumped 21 percent in after-hours trading following the decision to $16.25.
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