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LOWERED ROYALTIES MAY AFFORD A
TEMPORARY FINANCIAL FIX FOR WEB RADIO
Web radio station owners have battled for almost two years to halt the increases in royalties they must pay for music used on their stations. While this is particularly relevant to all-music stations, it can impact those talk shows that offer a mix of interviews and music. Talk shows are a valuable promotional outlet for authors and publishers.
Web radio can’t generate audio advertising unless it can offer a substantial listenership, something few can promise. Pop-ups and other visual advertising aren’t available on radio. Several stations have attempted a donation solicitation similar to Public Radio, but with a small listener base, that can’t generate enough to cover costs.
The government’s Copyright Royalty Board has to re-evaluate its royalty rulings to keep pace with the changes in the broadcast arena. It must afford a fair balance between royalty payments to stations of all sizes, tempering the advantages given to larger stations. Satellite radio pays far lower royalties than web radio and large broadcasters pay none at all. The broad promotional reach the big boys offer a composer are considered adequate payment.
It’s time to update to the digital age and strike a livable balance for all.
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