Pandora signs license deals with Sony, Universal Music
[LOS ANGELES] Pandora Media Inc said on Tuesday it had signed direct licensing deals with a number of music labels, including heavyweights Sony Music and Universal Music Group, beefing up its music collection to compete with Spotify and Apple Music.
Shares of the music streaming company were up 4.3 per cent at US$14.90 in premarket trading.
The deal with more than 30 independent labels and distributors grants Pandora rights to their US catalog and allows it to offer a new version of its streaming service, the company said.
Pandora, which already has license deals with ASCAP, BMI and more than 2,700 publishers, said the latest deals also give it new advertising opportunities.
Unlike other streaming services that have negotiated deals to allow listeners to pick songs, Pandora has acted more like a radio station that plays songs matching a genre without allowing users to make selections.
The company had 78.1 million active users as of June 30.
SunTrust Robinson raised its rating on the stock to 'buy' from 'neutral' on Monday, calling the deals with music labels and new tiered products positives.
REUTERS
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Consumer & Healthcare
Australia wants businesses to diversify after China scraps wine tariffs
Japan drugmaker reports two more deaths in supplement scare
Chanel flap bag now costs more than 10,000 euros in Paris
Florida governor, Disney reach settlement in lawsuit over special district
Kobayashi Pharma ordered to recall red yeast rice pills after 2 deaths
Second Chance Properties H1 profit falls 52.8% to S$4.3 million