More from Westergren about radio. He says one of the big tectonic shifts in the years to come will be the migration of listeners off of radio and over to Internet radio. And he says one of the reasons that will happen has to do with the fact that radio doesn’t pay artists for their music and Pandora does.
Of course, you’ve all heard this argument before. And there was no follow-up about the promotional partnership radio has with artists, a relationship artists tout whenever and wherever they can. Here’s more from the Pandora CEO.
Westergren says one of the facts about the music industry right now is that broadcast radio does not pay royalties to artists. “We pay more in royalties than the entire radio industry pays, as a single company. That’s not a complaint about our structure. That’s the elephant in the room. That’s a $17 billion industry that does not compensate recording artists. That can’t go on and it either gets changed through regulation or it gets changed because people stop listening to that medium, and that’s starting to happen. That’s a big shift, going from an industry that pays nothing to an industry that pays half its revenue.”