(Reuters) - Internet radio companies such as Pandora Media Inc will have to pay more in royalties next year to musicians after the three-judge U.S. Copyright Royalty Board increased the rates for ad-supported streaming by 21.4 percent.
The Copyright Royalty Board said on Wednesday that Internet radio operators will now have to pay 17 cents per 100 plays in 2016 as royalties for ad-supported streaming, up from 14 cents now. (1.usa.gov/1Ny02Ft)
The new rate will come to effect on Jan. 1 and be valid for the period of 2016-2020.
Pandora shares closed up 3 percent at $13.40 but rose higher in after-hours trade.
Reporting by Subrat Patnaik in Bengaluru; Editing by Bernard Orr