The newly combined Sony/ATV-EMI music publishing powerhouse has used its market clout to negotiate a 25% royalty increase from Pandora, according to a report in the New York Post. The deal is said to run for the next 12 months.

A source close to the situation confirmed to Billboard.biz that a new deal with Pandora is in place, but declined to provide further details.

Although Pandora has been vocal in recent months about the steep rates it pays, this latest move seems likely to result in an increase with other rights holders, as well as for other digital music operations.

Pandora’s stocks tumbled last month after the company released a disappointing fourth-quarter financial forecast.

Sony-ATV CEO Martin Bandier told The Post: “At the end of the day, we got a terrific deal for our songwriters. Our thinking has been vindicated. Hopefully it’s the first of many.”

At press time, reps for Sony-ATV and Pandora had not responded to Billboard.biz’s request for further comment. [Billboard.biz]