Monday, August 24, 2009

Yahoo Radio May Not Have to Pay Royalty Fees

If the music is free to broadcast radio, why shouldn't be free to webcast radio. That may simply be the crux of the argument. And the courts have agreed. "A federal appeals court in New York ruled that a Yahoo Inc Internet radio service is not required to pay fees to copyright holders of songs it plays, a defeat for Sony Corp's BMG Music."With more broadcast radio stations simulcasting their programs over the web, it may have had implications to them as well. Ultimately it provides the same idea of convergence to radio that TV has been dealing with. The consumer wants radio; they simply want it on the device of their choosing and not limited to a radio box. Perhaps too, it can lead to more opportunity for the music publisher. With songs heard on an interactive medium, purchase behavior can be impacted instantly, enabling the consumer to move from listening to purchase in a click. Obviously, the big issue is digital rights management, but music publishers shouldn't cut off their nose to spite their face. The opportunity exists to turn the web into another growth opportunity for them as well.

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