Category: Performance Royalty


MusicFIRST, but MusiciansLAST?

MusicFIRST really needs to have their heads examined. They're in a tizzy because, allegedly, Pandora executives have done what executives at companies post-IPO do - cash out some shares.  And since these folks own a lot of shares, that can add up to a lot of money. But what does this have to do with the central question of onerous music royalty rates and the Internet radio industry's long-term ability to profit in the face of them? Forgive the Econ 101 lecture, MusicFIRST, but the value of shares for a public company is a reflection of the market's expectation of future profitability, … [Read more...]


Pandora, Lefsetz, and Common Sense

Every now and then I read something which is so totally off the wall it demands a thoughtful response. So it is with Bob Lefsetz's recent screed on Pandora. Lefsetz, who is more a lightning rod than a beacon for insight, is a former music industry exec who has so many chips on his shoulder, his shoulders are virtually all-chip.  WIRED described him thusly: "Blogger (and digital-era pamphleteer) Bob Lefsetz couldn't make it in the music biz—until he started ranting about how it should be run." Lefsetz writes: Tim Westergren is not running a music service, but a religion. He expects his … [Read more...]


Key Lessons from Online Radio Abroad

Two things separate the way online radio works in the US from the way it tends to work internationally. First, there's far more cooperation between the interested parties abroad. And when people work together on common goals, common incentives, common platforms, they are more likely to achieve results. Broadcasters in the US need to recognize that the online radio marketplace is not an extension of the radio platform - it's an all new platform.  And new platforms grow because they're nursed with tender loving care by all those who stand to benefit from the new platform.  If it's … [Read more...]


Everything you Need to Know about FM Radio Chips in Mobile Phones and NextRadio

Will FM be built into every mobile phone near you? Only time will tell.  But let's consider some common questions and answers related to this possibility, all from my perspective. As the old saying goes, be careful what you wish for. Question:  With FM on mobile phones I will no longer need to stream my content, right? Think of the money I'll save! Answer:  Wrong.  The purpose of streaming existing and new content via the Internet is not just to be present on mobile devices but to provide the heart of a broader brand experience attractive to consumers and advertisers alike. Dumping … [Read more...]


Radio’s Wrong-Headed Performance Royalty Plan

Dear National Association of Broadcasters: I know you guys mean well.  I know you are listening hard to your constituency of broadcasters and trying your best to serve their will. But someone in your esteemed organization needs to stand back and assess what's in the best long-term interests of the medium you are sworn to represent.  Someone at NAB needs to admonish the kids at the broadcaster's dinner table that just because they want a milkshake for dinner doesn't mean it's good for them. Yes, I'm talking about radio's performance royalty plan. I am no expert in this matter, but … [Read more...]

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