The Real Math of Pandora Royalty Payments

Michael DeGusta takes David Lowery to the woodshed:

Even more importantly, FM/AM paid him NOTHING for the performance of the song. Unlike most industrialized nations, terrestrial radio stations in the US have never paid performers anything. It’s hard to believe, but true: they can play John Coltrane’s version of “My Favorite Things” for decades and never pay him or his estate a single cent.

Lowery doesn’t disclose the Pandora performance royalty but he declares it “unsustainable.” This is a fascinating perspective: apparently in Lowery’s view a performance royalty of $1,275 is unsustainable but the AM/FM world of $0 is totally fine?

Wednesday, 26 June 2013