Shares of Pandora (P) fell in Friday trading after the streaming music service lost a courtroom battle with licensing agency Broadcast Music Inc. BMI sued Pandora in 2013, seeking a higher royalty rate Pandora pays to play songs in its catalog. BMI said in a statement that the New York Rate Court ruled in its favor and agreed that the royalty rate of 2.5% of revenue was ‘reasonable, and indeed at the low end of the range of fees of recent licenses.’ BMI called the win a ‘huge victory for the more than 650,000 songwriters, composers and publishers’ it represents. Pandora, however, said it disagrees with the ruling and plans to appeal. It said its content costs as a percent of revenue could climb by up to 80 basis points as a result of the ruling.
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