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Thu Feb 28th 18:50 PM | Rating: 0 0
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The Radio and Recording Industries' Unnecessary Roughness

Best perspective on the issue I've ever read. Market forces can sort this whole mess out. Performance royalty should be 6% for all non-interactive delivery vehicles - satellite, Internet, terrestrial analog, terriestrial digital, whatever else comes along. At same time do away with payola laws. If promotional value of terrestrial radio to the recording industry is more than 6% of terrestrial advertising revenues, net gain to broadcasters. If over time listenership -and advertising - moves to Internet, then Internet will pay more royalty fees, but more promo dollars may move that direction as well. Market forces will pull this along and the most efficient distribution vehicles will prevail. Short of leveling the royalty playing field and letting market forces work, there will be no way to determine the relative effectiveness of each delivery mechanism.
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