A major side effect of these direct deals is that streaming on Pandora is no longer subject to the statutory rates set by the U.S. government and payable via SoundExchange. Not only is this a major loss of income for SoundExchange, it also removes an important layer of protection and oversight that the not-for- profit performing rights organization provided artists.
Source: Pandora’s New Direct Deals Are Very Bad News For SoundExchange And Potentially For Artists – hypebot
