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.