This guy's math is all wrong
Charlie Demerjian writes that "it charges .07 cents per song per listener. For the math challenged, if you have 100,000 listeners, you pay 70 cents per song. That can add up quickly, unless you are a US commercial FM station, where your bill probably won't exceed $4 a day"
His math is totally inane. 0.07 cents a day is $70 dollars, not cents, per song with 100,000 listeners. Even if it was, every station would quickly pass the $4 mark (the equivalent of less than 6 songs) in an hour, let alone a day. The actual cost of a radio station with 100,000 listeners would be $420/hour (if they play 6 songs each hour and the rest is commercials/talk) or $10,080/day.
Taken from the link to the Carp report:
Here's the math (using 0.14 instead of the 0.7 he said):
# of listeners: 1
# of hour/day listened: 10
# of songs/hour: 18
Cost per song: 0.14 cents x 1 listener = 0.14 cents
Cost per hour: 0.14 cents x 18 songs = 2.52 cents
Cost per day: 2.52 cents x 10 hours = 25.2 cents
Cost per month: 25.2 cents x 30 days = $7.56
Cost per year: $7.56 x 12 months = $90.72
Thanks to Crash for the math help.
His math is totally inane. 0.07 cents a day is $70 dollars, not cents, per song with 100,000 listeners. Even if it was, every station would quickly pass the $4 mark (the equivalent of less than 6 songs) in an hour, let alone a day. The actual cost of a radio station with 100,000 listeners would be $420/hour (if they play 6 songs each hour and the rest is commercials/talk) or $10,080/day.
Taken from the link to the Carp report:
"Based on the rates established in that agreement, the CARP concluded that a service transmitting original Internet programming ("Internet-only" services) should pay a royalty of 0.14¢ for each performance that it transmits, and that a service retransmitting a radio broadcast should pay a royalty of 0.07¢ for each performance that it retransmits. For purposes of paying the royalty, each transmission to each individual recipient is counted as one performance. Noncommercial broadcasters who are not affiliated with the Corporation for Public Broadcasting (which negotiated a separate royalty rate in a private agreement) would pay a royalty of 0.02¢ for each simultaneous Internet retransmission of an over-the-air AM or FM broadcast, 0.05¢ for other Internet retransmissions, including up to two side channels of programming consistent with the station's public broadcasting mission, and 0.14¢ for transmissions on any other side channels."I take that to mean that if you or I set up an internet radio station, we are responsible for 0.14 cents for each song we stream to an individual.
Here's the math (using 0.14 instead of the 0.7 he said):
# of listeners: 1
# of hour/day listened: 10
# of songs/hour: 18
Cost per song: 0.14 cents x 1 listener = 0.14 cents
Cost per hour: 0.14 cents x 18 songs = 2.52 cents
Cost per day: 2.52 cents x 10 hours = 25.2 cents
Cost per month: 25.2 cents x 30 days = $7.56
Cost per year: $7.56 x 12 months = $90.72
Thanks to Crash for the math help.
