Extremely high streaming fees are causing big companies to drop am music formats

[antennatv]

I feel the reason am 1210 is not dropping talk is because if they dropped talk for a music format they would be forced to drop their audio stream because of the extremely high streaming fees. And the second reason is because they can't find a music format that will sell to the sponsors in this market. An oldies type format whether it is oldies, singers & standards or classic country will no longer sell to sponsors in this market.

So radio stations today are left with only two decisions they don't want to make, but are forced to. It's either you drop your audio stream and change to a music format, or keep your audio stream and stay or go with a conservative talk format. Also, check the two examples below:

WOBM AM dropped their oldies format for conservative talk because they felt it was getting way too expensive to continue streaming the Goodtime Oldies format. They would have to drop the audio stream if continued carrying oldies.

WMTR AM dropped their audio stream. Again, it was getting too expensive to continue streaming the oldies format. So, they had to make a decision they really did not want to make. They wanted to keep their oldies format, so they had to drop the audio stream instead.

 

[FredLeonard]

The fact that it's been years since a music format has been financially successful on AM might have something to do with it.

Radio stations get preferential rates for music licensing, compared to online services. And talk radio is not cheap. Not to produce. And fees to carry syndicated shows are not as steep as they were but still pricey.

 

[TheBigA]

WOBM AM dropped their oldies format for conservative talk because they felt it was getting way too expensive to continue streaming the Goodtime Oldies format.

Can you provide a reference for that? My understanding the that the Oldies format was being discontinued by the syndicator, and the syndicated talk shows became available in the area.

 

[davideduardo]

The fact that it's been years since a music format has been financially successful on AM might have something to do with it.

Radio stations get preferential rates for music licensing, compared to online services. And talk radio is not cheap. Not to produce. And fees to carry syndicated shows are not as steep as they were but still pricey.

Terrestrial radio does not pay artist and label royalties at all; they pay ASCAP, BMI and SESAC fees to the authors and composers. When they stream, they are no different than any other streaming provider.

Most syndicated shows are given to stations for "free" in exchange for barter time. Very few shows charge cash on top of the inventory requirements.

 

[FredLeonard]

Terrestrial radio does not pay artist and label royalties at all; they pay ASCAP, BMI and SESAC fees to the authors and composers. When they stream, they are no different than any other streaming provider.

Most syndicated shows are given to stations for "free" in exchange for barter time. Very few shows charge cash on top of the inventory requirements.

Then why did Pandora buy a radio station?

The station in question is running Rush and Hannity. Are you saying they are barter?

 

[Goat Rodeo Cowboy]

Then why did Pandora buy a radio station?

The station in question is running Rush and Hannity. Are you saying they are barter?

This is a topic that is way, way out at the very edge of anything where I can claim expertise, but I remember at the time "Pandora buys radio station" was news, there was speculation they were looking for an opportunity to mount a legal challenge to see if as a broadcast licensee they could claim some kind of loop-hole in the law that would allow them to escape some of the burden that streaming-only servicse face in music licenses.

A legal challenge effort like that can take YEARS to pursue before you have an answer.