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I am a little confused about traditional radio NOT paying out royalties for over-the-air broadcasts. Is this actually true?


That part is misleading; terrestrial radio pays songwriters and their publishers, but not recording artists or owners of the master recordings (yet).


Hmmm... Let see. You're wondering why its taking forever for our government to pass new updated copyright laws. It's probably for the same reason that our government hasnt passed anything meaningful in the last couple of years... They cant agree on the best way to tie thier shoes in Washington!

Neil Cartwright

I don't think copyright law is to blame. Copyright merely establishes the rights of the intellectual property owner. What is required is the establishment of a compulsory license to lower the cost of entry for new technology and enable more sites to acquire a license.


Another couple important points left out:

As Jay pointed out above, terrestrial broadcasters pay songwriters an publishers. In the indie world this usually the same as recording artists and master owners, but not always. Also the payouts are based on an antiquated survey model where the lesser played are just not paid. Payouts are top heavy, geared toward the top 20% of popular artists.

Pandora averages 1 minute of ads per hour while SiriusXM averages 13. I personally think Pandora would be more profitable is they sold 13x as many ads, but that's just me.

Spotify has the highest ever conversion rate of free to paid users. If they can stay alive another couple years on funding money, it could very possibly become self sustaining.

The new bill put forward by the Internet Radio Fairness coalition has Clear Channel working along side their market-share-stealing enemy, Pandora. I like Pandora but I can't support anything put forward by Clear Channel. Especially when you look at the details; it's just stripping the CRB of effectiveness and independence.

I'm all for compulsory license reform, but maybe we should let some musicians have some input?

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