Yahoo!, AOL May Silence Internet Radio Streams
November 28, 2007

In light of the rise in royalty rates for Internet radio stations, Yahoo! and AOL are considering shutting down their online radio services. In fact, both companies stopped directing users to their radio sites after SoundExchange began collecting the higher fees in July. Instead, Yahoo! is promoting its music service that offers videos and songs for sale rather than its Launchcast Internet radio site. As a result, the number of people using Launchcast fell 11 percent to 5.1 million in October, according to ComScore, and AOL Radio users declined 10 percent to 2.7 million.

"
We're not going to stay in the business if cost is more than we make long term,'' said Ian Rogers, GM at Yahoo's music unit, according to Bloomberg news.

The two companies were hit with a 38 percent increase in royalties to air music after the Copyright Royalty Board voted that royalties be raised to 0.11 cent for each song listened to from 0.08 cent last year. The rate is scheduled to reach 0.19 cent in 2010.

"
The current math doesn't add up," Lisa Namerow, managing director of AOL Radio, told Bloomberg. "If the rates remain as they are, it would be very challenging to sustain a business that is profitable."

Radio sites have been "dealt a severe blow,'' added Jeffrey Lindsay, an analyst at Sanford C. Bernstein & Co. in New York. "It seems very unlikely that at this stage a solution will be reached." He estimated that the higher fees will "kill the growth'' of Launchcast, and that revenue at Yahoo's music unit may rise just 4.7 percent in 2008, compared with a 19 percent increase this year. Launchcast accounts for about a quarter of the division's sales.

Meanwhile, Webcasters and the music industry are still in talks to reach an alternate agreement. Discussions between the Digital Media Association (DiMA) and SoundExchange are ongoing.




 
Breaking News
BIA/Kelsey: Digital Revenues for U.S. Radio Continue to Rise
March 27, 2017
Dennis Reese Named SVP/Promotion At RCA Nashville
Cumulus Media Brings Hot AC To Savannah, GA Launches WZAT (102.1 The Sound)
In Brief - March 27, 2017
March 24, 2017
Ryan Seacrest Announces KIIS FM's Wango Tango 2017 Lineup
WMGC (105.1 The Bounce)/Detroit Adds “Big Boy” To Mornings
107.1 The BOSS/New Jersey Announce Air Talent Line-Up
March 23, 2017
iHeartRadio Surpasses 100 Million Users
Westwood One Promotes Mark Wildman to EVP/Strategic Partnerships
March 23, 2017
iHeartMedia Oklahoma City Names JJ Ryan PD For KJYO & KXXY
Entercom Names Richard J. Schmaeling EVP & CFO
Doug Gottlieb Joins FOX Sports Radio & FS1
March 21, 2017
Beasley Broadcast Group Reports 4th Quarter and Full Year 2016 Results
Chip Arledge Appointed OM For Cumulus Media Shreveport/Bossier City, LA
KXQQ/Las Vegas Names Natalia Hernandez As New Midday Personality
In Brief - March 21, 2017
March 17, 2017
Cumulus Reports Results for Fourth Quarter and Full Year 2016
Entercom Austin To Move 96.3 FM RnB To 95.9 FM
March 16, 2017
iHeartMedia Names Geoff "G-Off" Owens PD For KXJM/Portland & KUBE/Seattle-Tacoma
c3 & FMC Statement: Elimination of the NEA, NEH, and CPB Indefensible, Shameful, and Senseless
iHeartMedia Introduces SmartAudio
Condé Nast Acquires Pop2Life And Ribyt
March 15, 2017
Music News
Drake's More Life Sets Billboard 200 Streaming Record
Quick Hits: Halsey, Snoop Dogg / 2Pac, Pitbull / Wrestlemania, Paul McCartney, Phoenix, Matchbox Twenty & Counting Crows
Quick Hits: Kendrick Lamar, Iggy Azalea, Vans Warper Tour
Quick Hits: Gorillaz, Kaaboo Festival, March Madness
Chance the Rapper, The Killers, Muse & Arcade Fire Headlining Lollapalooza
QuickHits: Ed Sheeran, Chuck Berry, The Decemberists
QuickHits: NIN, Missy Elliot, Frank Ocean, Pitbull, Enrique Iglesias, Sublime
Rock Pioneer Chuck Berry Passes Away
The Entertainment World Remembers Chuck Berry
Ed Sheeran Spends Second Week Atop Billboard 200
QuickHits: Drake, James Blunt, Spoon, Bob Dylan
Quick Hits: Coldplay. BET Experience, Weezer
Quick Hits: The Chainsmokers, Pitbull, Ohana Music Festival, Arroyo Seco Weekend, Feist
Ed Sheeran Earns Biggest Debut Week of 2017
Quick Hits: Drake, Pearl Jam, Fifth Harmony
FMQB NOW

Sam Milkman, EVP
Coleman Insights

Advertisement:
Search FMQB.com
Advertisements:
FMQB Member Login
Email:
Pass:

Save
Not a member yet?
Sign up Now!
Sign Up for Breaking News!
Enter FMQB E-Tracking!