Traditional Radio to Pay for Play?


TRADITIONAL RADIO TO PAY FOR PLAY?
[SOURCE: BusinessWeek, AUTHOR: Olga Kharif]
First it was online music swapping, then Web radio. Now, the music industry is taking aim at something really big: traditional radio, a $20 billion industry that has, in its 80-plus years of existence, played songs without paying music labels and singers a dime. Aside from the occasional royalty scuffle across those decades, the music industry has always been happy to let radio stations play songs for free, treating it as a necessary marketing expense for the songs and albums they wanted listeners to buy. In fact, in the past, some deejays had been accused of illegally accepting payments from record labels for spinning certain songs. But with more music lovers consuming their passion over the Internet and through satellite broadcasters XM Satellite Radio (XMSR) and Sirius Satellite Radio (SIRI), the free exposure offered by FM and AM radio is no longer quite so valuable. And with online file swapping eating away at revenue despite the legal victories in that arena, the music industry wants all broadcasters to pay for its product.
http://www.businessweek.com/technology/content/jul2007/tc2007073_639316....

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