RAIN 6/20: Triton Media COO suggests 5%-of-revenue music royalty for both on-air, online by 2021
AGOVINO WRITES IN TECHCRUNCH THAT RADIO AND MUSIC INDUSTRIES’ HEALTH AT STAKETaking into account both the growing costs to broadcasters of streaming radio online and the music industry’s need to derive revenue from the use of music (and rely less on the sale of music), Triton Media COO Mike Agovino suggests, “The future for both (industries) is better together than apart.”
The crux of Agovino’s suggestion is a royalty for on-air radio starting at 1% of revenue and growing to 5% over the next 10 years. Simultaneously, radio will pay 25% of revenue for the use of streaming music [we’re assuming he means streaming revenue here with regards to broadcasters], which will fall to 5% over the next 10 years. Then, in 2021, “an all-in, 5% revenue share across the board in 2021 would allow broadcasters to anticipate and structure accordingly while also allowing the labels to bring in hundreds of millions of dollars today and billions in revenue over time,” Agovino writes. “On the flip side it would let the labels participate in a meaningful way while not preventing broadcasters from building a profitable online business.”
As radio listeners continue to adopt online technology, radio needs to be “where and how the audience wants them. Radio and record labels need to find business models that build value for both industries in this new world,” writes Agovino.
Read Agovino’s entire column in TechCrunch here.
WSJ REPORTS ON NEW TECH OFFERINGS AT NY JAZZ AND CLASSICAL STATIONSTwo New York-based listener-supported radio stations seem to be outpacing most other broadcasters at adopting to new digital platforms and tools. And they’re not stations targeted to tech-savvy youngsters, either.
Classical WQXR and Jazz WBGO “are embracing digital tools to position themselves as thriving multi-platform hubs,” writes The Wall Street Journal today, “fueled by live-streamed performances, HD broadcasting, social media and mobile applications.”
Both stations are also embracing online video to enhance their web presence, and both are offering side programming (either via HD or online streaming) to widen the musical choice available to listeners.
“And it’s not a moment too soon: As jazz and classical are increasingly abandoned by commercial radio, embracing digitization supports the music and expands their artistic communities,” writes The Journal’s Pia Catton.
Wall Street Journal subscribers can read this entire article here.
OAKLAND HOPES PANDORA IPO MEANS GROWTH FOR DOWNTOWN TOOAs most RAIN readers understandably view recent Pandora news through the lens of the digital economy or the broadcast industry, The Oakland Tribune has an interesting local perspective. Minute-by-minute stock price changes aside, “the Internet radio company likely will be a long-term boon for the city.”
Pandora’s growth means more jobs and more people, which can drive growth to restaurant/nightlife segments, the market for housing, and more. “They can absolutely transform downtown Oakland,” said Walter Cohen, director of the city’s Community and Economic Development Agency.
Read more from The Oakland Tribune here.
share: del.icio.us. Reddit Digg Yahoo Wink Windows Google Newsvine
Commenting is closed for this article.
RAIN has upgraded (and moved)!
RAIN 9/13: RAIN Summit Chicago takes place today!
RAIN 9/12: First Summit in RAIN's hometown takes place tomorrow
RAIN 9/9: Summer holidays, "doldrums" impact July Webcast Metrics, but audience up over last year
RAIN 9/8: Clear Channel launches new customizable iHeartRadio beta; RAIN goes hands-on
RAIN 9/7: Meet more speakers you'll hear at RAIN Summit Chicago in less than a week
RAIN 9/6: Clear Channel taps The Echo Nest to take on Pandora
RAIN 9/2: RAIN reviews Spotify's radio-like product Artist Radio
RAIN 9/1: UK online radio aggregator Radioplayer campaigns b'dcasters to create "all radio" ratings
RAIN 8/31: Execs from Merlin, Triton Digital, jacAPPS and more to appear at RAIN Summit Chicago