Here’s the deal: free terrestrial radio exists because it is advertiser supported. Radio stations play music that they think their listeners want to hear. The more listeners a station has, the more it can charge advertisers to run their commercials.
Although radio stations pay music licensing fees, these payments do not always touch all of the performers of a particular song. If you, as an artist/performer/composer/etc. have participated in the creation of a work that someone else is using to make money for themselves, then you, the artist/performer/composer/etc. have a right to be paid. End of story. Radio stations are using the work and efforts of others to help generate advertising revenues and profits for themselves.
Radio One founder and board chairman Cathy Hughes and radio personality Tom Joyner say the “performance tax” could almost certainly spell the end for urban radio because the additional costs would discourage the activities that help promote artists’ work. While it’s true that by playing an artist’s work, radio stations do provide some promotional value to the artist. But make no mistake, the primary beneficiary of playing an artist’s work is the radio station because of the advertising revenue they are able to generate.
Here’s my question: Black Buying Power in 2008 was projected to be $913 billion. How can black radio ever go out of business by selling access to $913 billion in buying power? My thinking is, maybe black radio isn’t charging enough! If advertisers want access to the millions of potential consumers present in black radio, they should be willing to pay a fair price for access. Free black radio isn’t going anywhere. There’s too much money to be made.
Motivational Podcast by RFFocus.org CEO Kevin Ross - More Episodes HERE