Music sites protest: industry tries to prevent ad-funded free content
Posted by Admin @ June 27th, 2007 in Other Marketing
The music industry is trying hard to prevent online radio stations to exist. 77 sees trouble in this environment that used to be an excellent example of online free content funded by advertisements.
SoundExchange, the music industry organization that collects Internet royalties, together with its offline counterpart Copy Royalty Board, decided that royalties for streaming music on Internet must be raised by 200%.
Internet stations realize this is a threat to their existence and have organized a day of silence yesterday. Hundreds of online music sites – including those of Yahoo – were silent all day. This was an initiative of the SaveNetRadio coalition.
We as marketers should be at least slightly worried about this. Internet radio used to be a great example of free content that was funded by advertising. The music industry now decided they need more compensation and the results – if everything goes through – will be the closure of many free content sites. Regardless of the question if this is right or not, it shows that advertising on free content sites can be a high risk venture, since you are dependent on the delivery of the content. So it will generally be a good idea to spread your marketing message over many media.
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I saw someone broadcasting live from their phone and was...