SoundExchange Exec. Dir. 'Internet Radio Place To Be'
June 5, 2008 at 5:10 AM (PT)
Business activity in the Internet radio sector has surged since the COPYRIGHT ROYALTY BOARD (CRB) set new rates 14 months ago for music played on Internet radio, according to SOUNDEXCHANGE, the non-profit organization that collects and distributes webcasting royalties for recording artists and copyright holders.
"Clearly, Internet radio has become the place to be for music broadcasters," said SOUNDEXCHANGE Exec. Dir. JOHN SIMSON. "While there still are few who are loudly predicting the demise of Internet radio à la the boy who cried wolf, the on-the-ground reality is saying something quite different. There is a lot of money to be made in Internet radio and royalty rates are not a barrier to developing strong, workable business models."
Nothing is more promising than the Internet for taking advantage of these opportunities, but the fact remains, artists have to be paid fairly for their work.
SIMSON noted that the way in which people are accessing music continues to undergo seismic shifts, moving from owning the music to listening to the music on various platforms. This change in how people listen to music is driving some business away from selling music to licensing -- giving people an opportunity to enjoy the music without having to own it outright.
"There are so many new and creative ways to access music, and more developing all the time, that music fans are finding new ways beyond ownership to enjoy music and to expand the types of music they listen to," said SIMSON. "Nothing is more promising than the Internet for taking advantage of these opportunities, but the fact remains, artists have to be paid fairly for their work."