KXMZ

KXMZ (102.7 FM) is a radio station serving the city of Rapid City, South Dakota owned by Pandora Media, Inc., through licensee Pandora Radio LLC. Licensed to Box Elder, South Dakota, the station broadcasts a hot AC format under the name "Hits 102.7".

The station became the subject of notoriety in June 2013, when the owners of the internet radio service Pandora announced a deal to purchase the station as a loophole in its disputes with music publishing societies over royalty payments. The deal was approved by the Federal Communications Commission on May 4, 2015 and was consummated on June 9, 2015.

History

Attempted purchase by Pandora

The internet radio service Pandora Radio had historically been in conflicts with ASCAP and BMI over increasing royalty rates for internet radio licenses relating to the service. Pandora had filed a lawsuit against ASCAP in November 2012, alleging that the collection society was charging Pandora higher royalty rates for internet radio than those negotiated by the Radio Music License Committee (a group of broadcasters which includes iHeartMedia, Inc., owners of the competing service iHeartRadio, along with Cumulus Media and CBS Radio), thus giving terrestrial radio broadcasters preferential treatment. Pandora also believed that it should also be charged lower rates directly from ASCAP because it had reached separate licensing deals with Sony/ATV Music Publishing and EMI Music Publishing.