Recent reports from the US and Germany (two of the top three countries for recorded music revenue) showed revenue losses for last year. Recorded music revenue is down by 0.9% in the US and 3.2% in Germany. Neither country has seen digital revenue growth offset the loss in physical sales.
According to the company’s CFO, Pandora is aiming to lower its royalty payments as a share of revenue by twenty percent over the next one to three years. Before the current statutory rates change in 2015, Pandora is planning to better manage its royalty costs.
Big Deal Music, a new boutique publishing firm, just signed an administration deal with BMG for North America and parts of Europe. The deal also provides a framework, in certain circumstances, for the two companies to sign talent jointly.