Understanding Pandora Royalties Between SoundExchange and RouteNote or other Distributors or Labels with Direct Deals

Pandora announced in September 2016 that they were going to enter into direct licensing deals with the recording industry’s major labels and some independent labels in order to license their new service offerings.

Pandora entered into direct licenses covering all three tiers of its offerings, and SoundExchange is working with rights owners and Pandora to continue to administer and pay artists’ royalties for the ad-supported tier of the Pandora service – also known as tier one. For the other new tiers of service, such as Pandora Plus and Pandora Premium, artists will receive any royalties due from their labels or distributors.

If you were previously using SoundExchange to collect Pandora royalties you will notice a change in your royalty reports.

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