(Reuters) – Pandora Media, a provider of music streaming services, reported a bigger quarterly loss as content acquisition costs nearly doubled, sending its shares sharply lower after hours.
The company said on Thursday it agreed to a $90 million settlement with a coalition of record companies for use of their recordings created before 1972.
Pandora said it recorded $57.9 million of the total settlement fee in the third quarter ended Sept.30.
The settlement follows satellite-radio company Sirius XM’s $210 million settlement in June with the same coalition.
The coalition includes ABKCO Music & Records, Capitol Records, Sony Music Entertainment, UMG Recordings and Warner Music Group.
It ends part of a long-running battle between the music industry and broadcasters over the right to play songs recorded before Feb. 15, 1972.
Pandora forecast fourth-quarter revenue of $325 million-$330 million. Analyst on average were expecting $351.8 million, according to Thomson Reuters I/B/E/S.
Pandora‘s net loss widened to $85.9 million, or 40 cents per share, in the quarter, from $2 million, or 1 cent per share, a year earlier.
Revenue rose to $311.6 million from $239.6 million, but this was far short of the average analyst estimate of $313 million.
Pandora‘s shares (P) were down 20.5% at $15.25 in after-market trading.
Up to Thursday’s close, stock had risen 7.6% this year
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