Radio, RIAA Fight While Their Industry Burns

thisradioilovemyactualradionotsomuch.jpgThe battle over royalties continues between everyone’s favorite lobbying groups, the National Association of Broadcasters and the Recording Industry Association of America. The RIAA, not surprisingly, would like radio stations to cough up more cash to major labels in exchange for the joy of broadcasting the new Puddle of Mudd single. The broadcasters contend that they provide a valuable service to the labels by playing their lousy music. So, who’s right? Thankfully, they commissioned a study to find out.

Sales vs. Spins, is based on data from Nielsen, which tracks music sales via SoundScan and monitors airplay through Nielsen BDS; and Pollstar, a Fresno-Calif.-based company that tracks concert sales. In a series of line graphs, the data shows that the when music airs on the radio, record sales go up. Music airplay and sales were analyzed for 17 artists covering all genres and varying levels of success such as Velvet Revolver, U2, Rascal Flatts, Linkin Park, Green Day, Bruce Springsteen, The White Stripes, Taylor Swift and Josh Groban.

“There is a direct correlation between the number of ’spins’ (plays on free, local radio) and the sales of albums or singles,” the report concluded. “It is this promotion – free advertising – that drives record sales and represents just one of the many ways local radio provides value to artists and contributes to their financial and commercial success.”

While it seems like there’s a pretty obvious connection between airplay and sales, as in someone hears a song and then feels like purchasing it, picking acts like the White Stripes and Green Day to prove that hypothesis seems dodgy, at best. When people hear a new Green Day song, there are also sales of their album? You don’t say!

Then again, maybe it’s not worth arguing about royalties right now, given that both organizations’ business models might not hold up after the next decade or so.

Study: Radio Airplay Increases Record Sales [Mediabase]

 
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  1. Anonymous  |   Posted on Jun 10th, 2008

    Promo guy: “Hey Mr. Program Director! I’ve got this great new band – getting heavy spins at KROQ, MTV VH1, WXYZ and more”

    Radio guy: “Jeez I dunno, there’s a new Puddle Of Mudd single on my desk that I think I wanna add instead”

    Promo guy; “Pleez – I’ll get fired if you don’t put this song into rotation”

    Radio guy: “(sigh). Fine. You’ve got a good little story developing. I’ll add it.”

    Promo guy: “Great! So where can I send the bill?”

  2. okiedoke  |   Posted on Jun 10th, 2008

    “17 artists covering all genres and varying levels of success,” you say? That sure sounds statistically significant!

    I have a better survey. I must have heard on the radio last year 10,000 songs representing all genres and varying levels of success. Didn’t buy a single one.

    I’m drafting my invoice for this year-long survey as soon as I’ve finished the bar chart. To whom should it go? RIAA or NAB?

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