According to a new economic analysis from former Stanford economics professor Dr. James Dertouzos, radio airplay brings in $1.5 billion to $2.4 billion in annual music sales to the recording industry. The analysis focuses only on album and digital track sales and does not take into account radio's impact on licensing revenue or merchandise sales. Also not factored into the report is radio airplay's promotional role in increasing concert ticket sales. The study examines the relationship between local radio airplay of music and sales of albums and digital tracks from 2004 to 2006 in the 99 largest markets. The analysis showed that an increase in spins resulted in a subsequent increase in album and digital track sales.

"By omitting concert and merchandise sales, as well as licensing revenue, this economic analysis is extremely conservative," Dertouzos said. "Nevertheless, the study clearly demonstrates that radio airplay increases music sales and that performing artists and record labels profit from exposure provided by radio airplay."

The National Association of Broadcasters (NAB) is hoping that studies such as this will discourage Congress from passing a bill which would require radio stations to pay royalties for the music they play. NAB EVP Dennis Wharton has stated, "Make no mistake: America's hometown radio stations expose musical artists new and old to 235 million listeners every week, generating untold millions in record sales for the music industry. Indeed, it is the unparalleled promotional value of free, local radio that has made America's music industry the most successful in the world."