Pandora’s Costs Are Likely To Rise

Martin Bandier (NYPost photo)

Music publisher Sony/ATV has wrangled a 25 percent increase in royalties from the Oakland, Calif.-based Internet radio player, The NYPost has learned.

The agreement may come as a surprise to some as the 6-year-old streaming upstart, which has roughly 60 million users, has been vocal about demanding decreases in the fees it pays to the music business and artists.

Sony/ATV, a joint venture between Sony Corp. and the Michael Jackson estate, secured the big jump up after it pulled digital rights from two associations effective Jan. 1, industry insiders told The Post.

Pandora executives have been huddling with Sony/ATV management to hash out a new deal that is said to run for the next 12 months — given the rapid rate of change in online radio.

Sony/ATV declined to comment on the terms of any new deal, but CEO Martin Bandier, told The Post: “At the end of the day, we got a terrific deal for our songwriters. Our thinking has been vindicated. Hopefully it’s the first of many.”

The firm will now seek better deals from other digital music players.

Pandora didn’t comment on the new deal.

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