AccuRadio Moves To Broadcast From Internet Streaming (April Fools? Hmmmm!)

Busts A Move To AM

In what could be just an elaborate APRIL FOOL'S DAY joke, ACCURADIO, in a bid to increase spot revenues and address the high music royalty costs of internet radio, will be transitioning away from internet delivery effective MONDAY, APRIL 5th, it was announced with straight faces by founder/CEO KURT HANSON and COO BEN HUSMANN. 

Noted HUSMAN, “Due to the high cost of music royalties for online radio, plus an opportunity we see for a significant revenues increase, we’ll be winding down our current online service and moving, effective next week, to broadcast radio."

HANSON noted that CONGRESS and the U.S. COPYRIGHT OFFICE have set radically different royalty structures for broadcast, satellite and internet radio, with broadcast radio paying about 6% of its revenues for music royalties, satellite radio paying about 15% of its revenues, and internet radio required to pay a per-performance rate that for some webcasters can represent up to 70% of their revenues.

Commented HANSON, “Although we feel that there is inherent unfairness in this rate disparity, we believe if more online radio brands follow our lead, even companies like PANDORA can find a way to achieve profitability." 

"The company has already lined up handshake agreements with top broadcast groups, including iHEARTMEDIA, AUDACY, CITADEL, BEASLEY, HUBBARD and MID-WEST FAMILY BROADCASTING (plus SLAIGHT COMMUNICATIONS in CANADA) for signals that cover close to 38% of the U.S population (and 16% of CANADA), making ACCURADIO's move to the AM band an easy transition for a large percentage of its listenership," noted ACCURADIO Chairman JOHN GEHRON. 

All 1,100 of ACCURADIO’s curated music channels will be available on the broadcast version, although only one on any given day. 

ACCURADIO EVP/Programming PAUL MALONEY said, “Liberated from the conventions of online radio, which include a typical spot load of only about four minutes of commercials per hour, in its new competitive environment, ACCURADIO on the AM band will be able to field a competitive product even while playing up to 22 minutes of commercials per hour."

ACCURADIO was able to line up a strong network of signals for its launch as a result of recent events. 

Admitted HANSON, “Thanks to RUSH LIMBAUGH's passing, lots of AM stations have become available at affordable prices. While some of us will miss RUSH’s insights, perhaps ACCURADIO’s diverse music offerings will similarly add to the public good.”

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