musicFIRST reveals corporate radio's revenue growth
Washington, D.C., 30th July 2007
The musicFIRST (Fairness in Radio Starting Today) Coalition today released a new economic study of the historic advertising revenues that corporate radio conglomerates have earned since 1998 and are projected to earn in the coming years.
The recently formed coalition is a partnership of artists and music industry organisations advocating that performers - from aspiring and local artists, to background singers and well-known stars - be compensated when their music is broadcast over the air. Currently, artists are compensated when their work is played on satellite radio, cable and Internet radio. However, AM and FM radio receive a free pass to broadcast the performances of thousands of artists every day without providing fair compensation.
The analysis, conducted by economist Barry Massarsky of Massarsky Consulting, shows that radio industry advertising revenues has grown from slightly more than US$15 billion in 1998 to nearly $20 billion in 2006, and are projected to grown to more than US$23 billion in 2011.*
The success of corporate radio conglomerates is not due to the "talk radio." Advertising revenue from music formats accounts for almost 80 percent of corporate radio's revenue. Since 2001, revenue growth from music formats was 15.5 percent.*
The United States is the only Western, free-market nation that does not require radio stations to pay artists and labels when they broadcast performances on the radio. In fact, when American music is played in foreign countries, they withhold their royalty to protest that U.S. radio stations do not honor a performance right for foreign artists.
"All we are asking for is simple fairness," said Mark Kadesh, Executive Director of the musicFIRST Coalition. "A commercially successful multi-billion dollar radio industry should be held to the same standards as its competitors. We welcome the success of corporate radio conglomerates and we're enthused that music is driving that success. Compensating performers is the right thing to do regardless of any economic analysis, but this data should nonetheless put to rest any broadcasters' cries of poverty."
At the same time, the musicFIRST Coalition announced that its founding member list has grown to more than 150 artists, with recent additions including: Rod Stewart, Dr. John, Elliott Yamin, Rick Springfield, Michelle Branch, Nitty Gritty Dirt Band, Roger Waters, and The Wreckers.
NOTES TO EDITORS
People who love music understand that creativity, talent and hard work are required to bring it to life. The goal of musicFIRST (Fairness in Radio Starting Today) is to ensure that struggling performers, local musicians and well-known artists are compensated for their music when it is played both today and in the future. Of all the ways we listen to music, corporate radio is the only one that receives special treatment. Big radio has a free pass to play music - refusing to pay even a fraction of a penny to the performers that brought it to life. musicFIRST (Fairness in Radio Starting Today) is committed to making sure everyone, from up-and-coming artists to our favorites from years-ago, is guaranteed Fair Pay for Air Play. For more information on musicFIRST (Fairness in Radio Starting Today) please visit www.musicFIRSTcoalition.org
* Click here for the pdf of the research slides.For further information contact:
Tel: +1 202 326 1702