Pandora pays statutory performance royalties to SoundExchange, as well as publishing royalties to ASCAP, SESAC, and BMI.
Many musicians are familiar with ASCAP, SESAC, and BMI, but unfamiliar with SoundExchange. To register with SoundExchange, please visit http://pandora.com/static/
Artists and record labels can register with SoundExchange to collect their portion of the royalties paid by Pandora and other Internet Radio streamers.
Similarly, songwriters collect their publishing royalties from ASCAP, SESAC, or BMI. They are negotiated separately by all legal music services including Pandora.