Pandora buys FM station

Music Streaming service Pandora has purchased a radio station in the United States.

Pandora has acquired CHR station KXMZ-FM which broadcasts as 'Hits 102.7' in Rapid City, South Dakota.

Rapid City is a market roughly the size of Mackay in North Queensland. 

'Hits 102.7' is the only terrestrial radio station owned by Pandora. Why have they bought it? Find out below;

The background to the purchase has been a prolonged legal battle around the royalties that Pandora is required to pay, as compared to terrestrial radio stations.

Owning an FM broadcaster now allows Pandora to be eligible for lower broadcast rates.

Pandora's Assistant General Counsel Chris Harrison has revealed that Pandora is filing a motion alleging "discriminatory treatment of Pandora and other internet radio companies by ASCAP". Pandora allege that this is due to it being offered access to music at higher fees and worse terms than to terrestrial broadcasters.

ASCAP have responded to the acquisition by accusing Pandora of attempting to underpay rights holders, saying; 

“Internet and traditional AM/FM radio services are very different businesses with different formats"

Read more at All Access here.

Check out the website of Pandora's new, and only, terrestrial radio station here.