As Clear Channel moves forward with plans to go private, the radio giant has reportedly reached a deal with Pandora to stream its customisable music stations across all of Clear Channel’s Web sites. UPDATE: Clear Channel says that they are developing a personalised radio player but would not confirm that Pandora is involved.
While Pandora fans may fear that Clear Channel will destroy the innovative music service, the deal may actually help Pandora survive. It has been struggling with a dilemma that threatens to shut it down: Onerous “performance” royalty rates — payable to the people who own the recordings of the songs the service plays — as well as signficant publishing fees — payble to the people who own the songs’ underlying compositions.
Details of the deal have not been disclosed, but we have to assume that Clear Channel is using its deep pocket to help subsidise Pandora’s costs, or else it couldn’t possibly afford to work with the behemoth. Billboard says Clear Channel’s Pandora-supplied personalised radio player will go live by the middle of the summer.
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