Since Pandora?s IPO a year ago, the online audio story has been�something of�a�broken 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 in�mobile�and in-car listening will only continue to skyrocket the tally as we move forward. This catch 22 has�slowed�the 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 does�a�local station have for�streaming its content?
Sunday, June 17, 2012
The Rebirth Of Radio
Since Pandora?s IPO a year ago, the online audio story has been�something of�a�broken 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 in�mobile�and in-car listening will only continue to skyrocket the tally as we move forward. This catch 22 has�slowed�the 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 does�a�local station have for�streaming its content?
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