As Pandora inches closer to the launch of its long-expected on-demand subscription service, it's aiming to avoid some of the public relations pitfalls surrounding royalty rates and payments that some of its predecessors have encountered in recent years. To that end, the company announced today a new agreement with rights administrator Music Reports to use that company's platform to increase the openness and transparency of its payment process and manage mechanical licensing and royalty administration.
Pandora, by purchasing pieces of Rdio last year -- while simultaneously making overtures to legacy music companies through direct deals and backdoor outreach -- announced its intention to enter the on-demand streaming world. That puts the company on the verge of a major shift in focus -- its deal with Music Reports will help it complete that transition for rights holders. And continue to present itself as more friend than foe.