Pandora Buys South Dakota Radio Station

In a move that shows just how out of whack the record industry is, Internet Radio powerhouse Pandora is purchasing Rapid City radio station KXMZ-FM in a move made strictly to give them lower royalty rates.

The company agreed to purchase KXMZ-FM, a Rapid City, S.D., terrestrial radio station. Its first foray into traditional radio broadcasting, the move has little to do with strategic shift and everything to do with royalty costs. 

Pandora pays two royalty streams, one for actual sound recordings and another to composers for publishing rights. The sound recording fees make up the lion’s share of its content costs. But by buying a terrestrial station, Pandora piggybacks onto a settlement that gives better rates on that smaller fee stream.

Maybe a new revenue stream for Governor Daugaard to pursue? Credit cards and radio stations…

Please follow and like us:
error