If Pandora thought its troubles were easing after securing a $480m strategic investment from SiriusXM… well, another digital radio firm is set to give it a headache.
TuneIn is suing Pandora, after an advertising-sales partnership between the two companies went sour. The lawsuit alleges breach of contract, anticipatory breach, breach of the implied covenant of good faith and fair dealing and negligent misrepresentation.
It revolves around a deal for Pandora to sell TuneIn’s digital audio ad inventory, paying a guaranteed quarterly revenue based on a minimum number of audio impressions provided by TuneIn, according to Billboard.
But TuneIn says that Pandora only sold against 13.9% of its predicted inventory in the first quarter of this year, after it “did not invest the resources and effort necessary to make the Network a successful sales platform”.
The lawsuit also claims that Pandora tried to terminate the contract alleging that TuneIn did not deliver on the terms. TuneIn is seeking a jury trial, while Pandora is not commenting for now.