Atlas CEO, Richard Stumpf, Responds to Pandora News

5/5/2015

Atlas CEO, Richard Stumpf, Responds to Pandora News

Pandora's recent move to acquire a small terrestrial radio station to avoid paying songwriter's fair rates is an example of a loophole that needs to be closed in the "new world." Streaming is replacing selling, therefore using royalty rates for songwriter's that were built from the perspective of "promoting" music sales, as opposed to what digital streaming really is - "consuming music" - is a mistake. I only hope with Roger Faxon, a former music publisher head and all around smart guy, now on the Pandora board, that the company will willingly adjust rates to match a "consuming music" paradigm. I know from my shared time with him on the NMPA board that this was something Roger fought very hard for as a publishing executive.

- Richard Stumpf (CEO, Atlas Music Group)