Digital Radio Royalties Start to Make an Impression – NYTimes.com
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.
Strange Random Radio Quote:
- Digital Radio Royalties Start to Make an Impression (nytimes.com)
- Digital radio royalties and Amazon music/movie bundling contrast to publisher treatment of e-books (teleread.com)
- Sirius XM Responds To Sound Exchange Request For Summary Judgement (siriusbuzz.com)
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- Taylor Swift’s Label Signs Groundbreaking Royalty Deal With Clear Channel (aceshowbiz.com)
- SoundExchange Collections Up 40% Last Year, Mostly Increased Payments From Pandora (audio4cast.com)
- The Rebirth Of Radio – TechCrunch (techcrunch.com)
- Abacast and SESAC Announce Marketing and Promotion Partnership (sys-con.com)
- Clear Channel Will Be The First To Pay Royalties For Music On Its Air (wnyc.org)
Posted on June 18, 2012, in Article and tagged Digital radio, Internet radio, Jeffrey Eugenides, Radio, Royalties, Sirius XM Radio, SoundExchange, Spotify, Virgin Suicides. Bookmark the permalink. Leave a comment.