Pandora is the latest music service to adopt Gracenote’s music lyrics licensing program. The deal will allow Pandora users to view the lyrics of any song streaming from the service at any time, so long as they are covered in Gracenote’s system. Gracenote has access to the lyrics of hundreds of thousands of songs through deals with more than 20,000 publishing catalogs. (PRNewswire)

Pandora CEO Tim Westergren says Pandora expects to turn a profit next year, a sharp turnaround from his prior predictions of bankruptcy following an increase in streaming royalty rates. Westergren told Bloomberg that revenues could double to $40 million this year. Driving this is the addition of 50,000 to 60,000 new users a day, which in turn is spurred by mobile applications for the iPhone and Blackberry. This increase of users, tied with Pandora’s ability to hyper-target ads to users, has helped the company win the attention of advertisers who have grown picky about where to spend their dollars. He also says the service will include more audio ads in the stream-up to three 15-second spots an hour from the one an hour included now. Display ads on both the Web and mobile applications are in the cards as well. But that doesn’t mean Westergren is done fighting for a lower royalty rate. He says negotiations are continuing and that he’s more optimistic than ever before that the issue will be resolved. (Bloomberg)

— The American Society of Composers, Authors and Publishers will honor music legend Smokey Robinson with the ASCAP Rhythm & Soul Heritage Award during the 22nd Annual Rhythm & Soul Music Awards, which will be held on June 26 in Los Angeles. (Marketwire)

— Rolling Stone is getting into the music-game business with “Drum King” a percussion-based version of games like Rock Band and Guitar Hero. The publisher has teamed up with 505 Games, a developer best known for its “Coking Mama” title. Drum King is expected to come out May 26 for the Nintendo Wii console and will include music from such artists as the Police, Queen, and Blur. Rolling Stone will highlight the game in its publication, Web site and in other media. (Variety)

— Mobile entertainment aggregator MyMojo has purchased the domain name from the failed ad-supported music service, where it plans to offer downloadable ringtones and music downloads.

Posted by: Amy Sikkes