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Royalties and Spins
Pandora, as of September 2016, has entered into direct licenses with record labels, digital music distributors and music publishers for the rights to play music with semi-interactive features on our ad-supported and Pandora Plus services in the US, and for on-demand rights in Pandora Premium. Pandora pays sound recording royalties in accordance with the terms of its agreements with sound recording owners, collection societies and rights administrators. Artist royalties for the ad-supported service continue to be paid through SoundExchange. Royalties for subscription services are paid through to record labels.
SoundExchange will continue to pay ARTIST royalties to artists for the ad-supported service. In accordance with Pandora's Direct Deals for the new interactive subscription services, all other sound recording royalties are paid to your record label or distributor.
If you are unfamiliar with SoundExchange, please register register at https://www.soundexchange.com/ to collect your portion of royalties paid by Pandora as well as other companies that stream music or comedy. Both record labels/owners and performing artists can collect money from SoundExchange, regardless of whether you reside or do business in the United States.
The letter relates to your songwriter royalties. While your public performance royalties will continue to be paid by your Performance Rights Organization (PRO), Pandora’s interactive subscription services require mechanical licenses and generate mechanical royalties. Pandora has retained Music Reports Inc, (MRI), to assist in the procurement of mechanical licenses and to administer mechanical royalty payments earned in connection with those licenses.
It is necessary for you, through your music publisher, to affiliate with MRI in order to receive these royalties. Songwriters and publishers can enter into a direct deal with Pandora, through MRI, by visiting https://www.musicreports.com/offers/pandora. Songwriters and publishers that would prefer to have their compositions licensed on a compulsory basis must still provide their composition and payment information in order to receive their mechanical royalties from MRI.
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