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Pandora chief Tim Westergren: on-demanding.

PANDORA INKS ON-DEMAND DEALS WITH UMG, SONY, INDIES

Pandora has announced licensing deals with UMG, Sony and a brace of indie labels for its on-demand service as it prepares to enter the fray against big streaming rivals Spotify and Apple Music, among others. WMG, whose owner, Len Blavatnik, has a big stake in European streamery Deezer, has not yet struck such a deal with the tech giant, which has long dominated the streaming-radio lane.

Indies cutting deals include trade coalition Merlin and Sony's The Orchard, among others.

“This was a truly collaborative attempt to find a solution that would support artists while profitably growing our respective businesses,” Pandora founder/CEO Tim Westergren said in Tuesday’s announcement. “And that is exactly what we achieved. Working together, we can reshape the digital music market and grow a great business that provides tremendous value to the music industry for decades to come.”

The release also contained statements from three of the signees.

Sony’s Doug Morris: “This partnership should be a very encouraging sign for the entire industry. Pandora is a company founded and run by a musician. We are naturally aligned and look forward to growing the music business together and collaborating to support our artists in the digital era.”

UMG’s Sir Lucian Grainge: “We are pleased to work with Pandora to enable compelling new products and services for one of the largest music streaming audiences in the world. Working collaboratively, we have created a thoughtful partnership that enables innovation and has the potential to delight music fans and benefit the entire music ecosystem of recording artists, songwriters, labels and publishers.”

Merlin CEO Charles Caldas: “We are very pleased to broaden our relationship with Pandora, and to see additional revenue opportunities being created for our members. Independent music has always been at the heart of Pandora’s experience, and we are confident that Pandora’s users will appreciate and enjoy the music from Merlin’s market-leading member labels and artists as a vital element of the newly enhanced experience.”

Pandora acquired the on-demand outfit RDIO last year to build its on-demand version, and has been discussing a discounted tier to attract a swath of consumers not prepared to shell out $10 per month.

News of the deal naturally spiked the company's stock, which now sits at $14.05 per share (+1.68%).

Pandora has already made deals with major and indie publishers and PROs, and its enormous user base (some 78m+ users) represent a real threat to the big players in the stream.

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