Pandora’s music streaming service looked set for change at the start of 2016 as it aims to raise cash and make a bid for struggling rival Rdio for 75 million dollars. With claimed assets of 180 million dollars in the bank, Pandora is hoping to raise another 300 million thanks to a new share offering and may win an additional 45 million from an unrelated offer from investment firm Morgan Stanley.
“Today is an important day for Pandora as we announce another step forward to strengthen our position as the world’s most powerful music discovery platform and drive the company toward long‐term growth. I want to take this opportunity to provide the broader context of Pandora’s vision and clearly lay out our strategy to deliver on the next chapter of Pandora’s growth. We have an ambitious plan for our future… [We will] expand our core business and enter new adjacencies, bringing immediate differentiation and competitive advantage,” McAndrews said. “We intend to be the go‐to music destination, unifying the full music experience under one roof, spanning radio, on demand, and live music. In sum, we will provide music where you want it, how you want it, and for everyone who wants it.” CEO Brian McAndrews was quoted as saying.
In related news Swedish owned, Berlin based music hosting service SoundCloud has raised 300 million dollars from a private investment firm this year already. Having recently reached a licensing deal with the UK’s Performance Rights Society (PRS) granting the company the use of their artists’ music in line with their aim of adding advertising and subscription based services later this year. The deal also puts an end to legal action which the PRS had been threatening.
Indeed it’s been a busy month for SoundCloud according to the Wall Street Journal, who also signed a deal with Universal Music geared also around generating royalty payments for their members from the forthcoming advertising and subscription services mentioned above.
About PRS for Music:
The Performance Rights Society represents the rights of over 115,000 songwriters, composers and music publishers in the UK. As a membership organisation it ensures creators are paid whenever their music is played, performed or reproduced, championing the importance of copyright to protect and support the UK music industry. The UK has a proud tradition of creating wonderful music that is enjoyed the world over and PRS for Music has been supporting the creators of that music since 1914.
PRS for Music provides business and community groups with easy access to over 10m songs through its music licences. In an industry worth over £4.1bn PRS for Music is uniquely placed to be a voice for music and music creators. Collecting £664.3m in 2014, PRS for Music is one of the world’s most efficient combined rights organisations. With over 100 representation agreements in place globally, PRS for Music’s network represents over two million music creators.
SoundCloud, launched in 2008 by Alexander Ljung and Eric Wahlforss, is the leading audio platform that gives users unprecedented access to the world’s largest community of music & audio creators. With its continued ambition to unmute the web, SoundCloud allows everyone to discover original music & audio, connect with each other and share the sounds they hear. In addition, sound creators can use the platform to instantly record, upload and share sounds across the internet, as well as receive detailed stats and feedback from the SoundCloud community. For more information go to SoundCloud.com