Pandora's KXMZ Deal Shows It 'Declared War on Songwriters,' NMPA CEO Says
Pandora's deal to buy a "small station in South Dakota" shows the company "has declared war on songwriters," said National Music Publishers’ Association CEO David Israelite of the firm's attempt to lower its royalty rate through the acquisition. "In the…
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history of the struggle between creators and those who try to profit off of their work without paying them fairly, this move by Pandora ranks as the most cynical and shameless." The station "has become a pawn in Pandora's game to pay the creators on which it built its business even less," Israelite said in a news release Tuesday. The FCC said the previous day that Pandora could be up to 49.99 percent foreign owned, paving the way for the company to get agency approval for its $600,000 planned buy of KXMZ(FM), Box Elder, South Dakota, from Connoisseur Media (see 1505050049), a deal that NMPA has criticized (see report in the June 17, 2013, issue). A representative of the station had no immediate comment Wednesday, and Pandora declined to comment. "Pandora is radio," and buying KXMZ would qualify the company for the same Radio Music License Committee license "under the same terms as our competitors," the company said Monday when it got the FCC foreign ownership declaratory ruling. "This move makes sense to us beyond the licensing parity alone."