Smells Like Teen Enron: Pandora Sues Songwriters Again. Why?


The Trichordist

Pandora is currently suing BMI songwriters over the rate it will pay for the next 4 or 5 years.

Pandora wants to pay 1.75%.  BMI songwriters would like them to pay 2.5%. In 2014 Pandora paid BMI $16.1 million dollars.   So basically Pandora is using the entire apparatus of the federal courts to get a reduction of less than $7 million dollars in 2015.  If it’s a 4 year deal that means Pandora saves $28 million dollars (Pandora growth has virtually stopped).  Court cases like this have typically cost the parties tens of millions of dollars.  This does not include the millions it costs taxpayers.

But let’s look at these numbers  in context to see just how ridiculous this case is.

(source for all of these charts are SEC filings and court testimony)

Pandora revenues in 2014 vs amount paid to BMI songwriter revenues  

Screen Shot 2015-02-12 at 1.02.27 PM

BMI represents about 48% of all…

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