Pandora Buys a Radio Station

Pandora Media Inc., the biggest online radio service, has bought a station in South Dakota to gain the same access to music and rates as terrestrial competitors.

Buying KXMZ-FM in Rapid City qualifies Pandora for the same rights and prices enjoyed by competitors such as Clear Channel Communications Inc., CBS Corp. and Cumulus Media Inc. (parent corporation of WJR-AM, Detroit).  A spokesman for Pandora is quoted as saying that the acquisition may lead to cost savings of less than 1 percent of revenue. The company hopes to benefit from lower rates negotiated in 2012 with music regulatory agencies such as BMI and ASCAP.

(Visited 34 times, 1 visits today)