Digital Radio Royalties Start to Make an Impression – NYTimes.com

English: Jordan Harbinger hosting "Game O...After more than a decade, the royalties for Internet radio and other digital music streams are finally starting to add up.

On Monday, SoundExchange, a nonprofit group that processes payments for online streams, will announce that it has paid $1 billion to artists and record companies since its founding in 2000, and that this year its quarterly payments exceeded $100 million.

The payments reflect the growing popularity of digital music as well as new ways for the record industry to make money as sales continue to fall.

“The way the industry is going, it is about multiple revenue streams, not just one,” Michael Huppe, SoundExchange’s president, said in an interview.

SoundExchange collects money from Sirius XM Radio, Pandora and other forms of Internet radio. For most labels and performing artists, this is the only money their recordings earn for radio play, since terrestrial radio pays only songwriters and music publishers. “On-demand” digital services like Spotify and Rhapsody, which let users choose exactly what songs to listen to, generally pay record companies directly.

Royalties were minimal in SoundExchange’s early days — for the year that ended in March 2004, it collected only $15.6 million — and while they have grown, they remain a relatively small part in the overall picture of music royalties. Last year, SoundExchange paid out $292 million, while in 2010 Ascap and B.M.I. paid songwriters and publishers a total of $1.64 billion, according to their annual reports.

via Digital Radio Royalties Start to Make an Impression – NYTimes.com.

Strange Random Radio Quote:

“Lux spent the ride dialing the radio for her favorite song. “It makes me crazy,” she said. “You know they’re playing it somewhere, but you have to find it.” ― Jeffrey Eugenides, The Virgin Suicides

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Posted on June 18, 2012, in Article and tagged , , , , , , , , . Bookmark the permalink. Leave a comment.

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