What does it cost to play a song?

[Walking On]

Like the subject says, what does it cost? Can the cost or associated administration affect a playlist? Do the rights owners affect what and how songs/music are distributed?

 

[davideduardo]

Like the subject says, what does it cost? Can the cost or associated administration affect a playlist? Do the rights owners affect what and how songs/music are distributed?

Radio stations pay ASCAP, BMI and SESAC based on a percentage of revenues, audience size or fee. Music stations do not pay per song but a blanket license... it comes to around 2% to 3% of gross revenue as a broad rule of thumb for the total payment to all of the societies. So an LA station billing $30 million might pay around $750 k to a million a year in authors and composers fees. Again, this is just to give you an idea, as each case and market will be different.

 

[Walking On]

Thanks, David. So this means that a station can literally play whatever it wants, then the societies take care of it from there by paying a proportionate amount from the total to the authors/composers for each play? I assume then, too, that stations must report their playlists with payment?

 

[davideduardo]

Thanks, David. So this means that a station can literally play whatever it wants, then the societies take care of it from there by paying a proportionate amount from the total to the authors/composers for each play? I assume then, too, that stations must report their playlists with payment?

SESAC was the first society to use monitors to determine both station payments and royalty distribution, using BDS. For a time, stations would be asked for a log of all songs for a week or so, and the average of all of them would determine how much each performer got. Then we got the ability to export from Selector or MusicMaster or whatever. In any case, any of the societies can use BDS or MediaBase or similar monitors to determine a proportional scale for roalty payment. It's not necessary for every station to report every week... just like Arbitron, just a sample of stations in each format, market size, etc., will do.

 

[cabradio]

Theoretically speaking, is it not possible to have written permission from every artist and rights holder to play the songs you play without compensation to them (or even work out a direct payment to them). As such, you would not be required to pay any licensing fees, because you have expressed written permission?

 

[12 In a Row]

Theoretically speaking, is it not possible to have written permission from every artist and rights holder to play the songs you play without compensation to them (or even work out a direct payment to them). As such, you would not be required to pay any licensing fees, because you have expressed written permission?

I don't see this working. Besides the paperwork nightmare:

1. Will you sign this paper allowing me to play your songs for free? NO
2. Will you agree to a direct, under the table? NONO and NEVER

 

[cabradio]

I don't see this working. Besides the paperwork nightmare:

1. Will you sign this paper allowing me to play your songs for free? NO
2. Will you agree to a direct, under the table? NONO and NEVER

Why do you assume the artist would say "no". The artists know exposure is what drives sales. I have started asking for specific permission from artists for my own show and have gotten a positive response.

 

[busyradioguy]

I don't see this working. Besides the paperwork nightmare:

1. Will you sign this paper allowing me to play your songs for free? NO
2. Will you agree to a direct, under the table? NONO and NEVER

Why do you assume the artist would say "no". The artists know exposure is what drives sales. I have started asking for specific permission from artists for my own show and have gotten a positive response.

The fees to ASCAP et al go towards the "composer" of the song. So if the artist isn't the composer, and the artist states it is OK to play the song without compensation, better hope the composer granted that permission.

Otherwise... BAM! Off to court you go.