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Study Says $2.3B in Net Radio Royalties by '08

Posted by CowboyNeal on from the biding-their-time dept.

An anonymous reader writes "According to a newly published report, the music industry will have a nice pile of cash to collect from net radio owners in 2008 — a staggering $2.3 billion to be exact. The report is based on current performance royalties paid by terrestrial radio vs. internet radio, and taking into account projected growth in listenership. Meanwhile, the corporate Clear Channels pay just $550 Million for broadcasting the same songs we've all heard before. Hardly a fair deal."

3 of 102 comments (clear)

  1. huh? by mastershake_phd · · Score: 5, Insightful

    Are they trying to make money or shut down internet radio? I was under the impression that most internet radio stations were run for fun, not profit.

    --
    Libertarian Leaning Political Discussion Forum.
  2. Yea, I don't think so... by Anonymous Coward · · Score: 5, Insightful

    That projected growth is on the tacit assumption that folks will pay more for the same product -- and they won't, The broadcasters will either raise fees or shut down entirely. Either way listenership goes down.

    There seems to be the gross assumption that Internet radio is insanely profitable. While it certainly enables small producers an outlet for their work vs conventional broadcasting, they still tend to have small audiences with niche markets.

    RIAA just needs to keep pushing until all we listen to is pirated, ripped MP3s all day, everyday.

  3. Re:Two things... by FlatCatInASlatVat · · Score: 5, Informative
    Second, it is fair. It is called economies of scale. Clear Channel deals is huge quantities. To put it another way, if you go to a local corner market and buy a pack of four rolls of toilet paper for $2.00, then you go to Costco and see the same brand of toilet paper in a box of 40 for $10.00, is that unfair? No, it is called purchasing in bulk. Same as the sort of thing that MS does with corporate VLKs versus regular retail prices.

    Wrong on two counts. Clear Channel and all other FM radio stations pay NO performance royalties. Yet the new rules would have inernet radio pay HUGE performance royatlies, relative to their revenues. (Both pay artist royalties. )

    Also, much of the reason that the toilet paper costs more at the small store is because of local overhead. The suppliers charge somewhat higher rates to the little guys, but not many times as much, as is being proposed in the new rules from the Copyright Office.