Internet Radio Royalty Math

4 Comments / Economics, Music / By

Lynne Kiesling

I misunderstood the per-play royalty in my previous post on Internet radio royalties. It’s not 8 cents per play per listener, it’s 8/100 of a cent per play per listener. So I was off by 2 decimal places; my apologies, and thanks to commenters for pointing it out.

So the annual royalty would be $40,353.33 for Groove Salad alone. Which is still too much when you consider the share of the total listener market that Groove Salad serves.

[Corrected as per comments, thanks!]

4 thoughts on “Internet Radio Royalty Math”

  2. gk

    Actually, you were only off by 2 decimal places originally. (1 cent = 10^-2 dollars.) So the annual royalty should be $403,533, which is again, too much.

    However, I’m not sure if the listener numbers are the total listener numbers, or the number for each song…

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