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June 17, 2012 08:01 pm GMT
Since Pandoras IPO a year ago, the online audio story has beensomething ofabroken record. Pure play audience numbers keep growing (Pandora's audience more than doubled from April 2011-April 2012) but the revenue growth trajectory, while steep, has yet to produce profitability. This is because unlike the traditional radio world audience is expense for online radio with a hefty performance royalty that mounts each time a consumer listens to a song.Dramatic increases inmobileand in-car listening will only continue to skyrocket the tally as we move forward.This catch 22 hasslowedthe shift to digital for traditional radio stations. For nearly a century now broadcast radio has operated without a performance royalty. However, these same brands face oppressive performance royalty fees from their online listenership. To date, it has been impossible for online music plays, whether they be from a pure play or a broadcaster, to turn a profit. So what motivation doesalocal station have forstreaming its content?
Original Link: http://feedproxy.google.com/~r/Techcrunch/~3/ib1U8OpcNSU/
The Rebirth Of Radio
Since Pandoras IPO a year ago, the online audio story has beensomething ofabroken record. Pure play audience numbers keep growing (Pandora's audience more than doubled from April 2011-April 2012) but the revenue growth trajectory, while steep, has yet to produce profitability. This is because unlike the traditional radio world audience is expense for online radio with a hefty performance royalty that mounts each time a consumer listens to a song.Dramatic increases inmobileand in-car listening will only continue to skyrocket the tally as we move forward.This catch 22 hasslowedthe shift to digital for traditional radio stations. For nearly a century now broadcast radio has operated without a performance royalty. However, these same brands face oppressive performance royalty fees from their online listenership. To date, it has been impossible for online music plays, whether they be from a pure play or a broadcaster, to turn a profit. So what motivation doesalocal station have forstreaming its content?Original Link: http://feedproxy.google.com/~r/Techcrunch/~3/ib1U8OpcNSU/
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