New deals in the digital age

Marty Bandier, head of Sony/ATV/EMI, has formally re-affirmed the publisher's threat to withdraw from the collective licensing system in the US if the Department Of Justice doesn't agree to revise the rules that regulate the two main American collecting societies for song performance rights, ASCAP and BMI. 
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An update on SoundCloud: The online music sharing service is seemingly close to a deal with the largest record labels Universal Music Group, Sony Music Entertainment, and Warner Music Group. Bloomberg says the major labels will agree to licences so SoundCloud can continue play their songs - and avoid potential legal disputes.  It seems SoundCloud is offering the three major labels equity in the company, in exchange for both licensing deals and guarantees not to sue over any past copyright violations when the service shifts to a monetised model. According to Bloomberg, Universal, Sony and Warner are being offered between 3% and 5% of SoundCloud, along with a cut of future revenues.

Pandora goes 'old skool' to reduce royalties

Pandora, the US based digital innovator which has spearheaded the development of online radio services stateside and led the 'interactive radio' side of the expanding streaming music market, has bought a good old fashioned FM radio station in South Dakota. The acquisition of KXMZ-FM in Rapid City gives Pandora a seat at the table of the Radio Music Licensing Committee and seemingly would enable it to reduce the royalties it pays to the American music publishers via the music collecting societies, in particular ASCAP, in an escalating row over the 'favourable' treatment given to the major US terrestrial broadcasters such as Clear Channel.

In parallel news,  at the World Creators Summit in Washington, DC, the US Register of Copyrights, Maria Pallante, confirmed that she's looking to "provide a full public performance right for sound recordings" in the USA in a move which would see terrestrial radio stations pay to use sound recordings - internet and satellite stations already do -  which will cheer record labels and recording artistes.