The Changing Relationship Between Radio Airplay, Record Sales, Musicians and Income

From Free Music Archive:

For at least fifty years of the 20th century, the relationship between music and radio airplay was fairly well understood. Record executives knew that if they wanted a hit record, they needed that song to get played on the radio, preferably as many times as possible. In fact, until 2000, radio airplay was essentially a prerequisite to selling significant amounts of recorded music.

Clearly, radio airplay is still critical – especially for genres like pop, country and urban/R&B – but in recent years both radio and the mechanisms for selling music have been upended. Traditional commercial radio, with its limited playlists and regional reach, has been challenged by new forms of radio: webcast versions of existing stations (including WFMU), pureplay webcast stations like Soma-FM or Pandora, and Sirius XM satellite radio. Then there are the interactive services like Spotify, Rhapsody, Last.fm, and Rdio, many of which mimic radio through playlist options or pre-programmed channels. And there’s YouTube, now considered one of the most widely used sources of music discovery in the world.

The sale of recorded music has also changed. Prior to about 2000, the money that a musician could make from the sale or license of a sound recording was pretty simple: you could sell physical copies of an album or a single in a retail setting like a record shop, you could sell them via mailorder, or at shows/gigs. If you were lucky and your music was placed in a movie or TV show, you could make money from the synch license on the master recording. But that was about it. Since about 2000, these options have expanded to include digital sales on stores like iTunes and Amazon, digital performance royalties when sound recordings are streams on non-interactive services like Pandora or Sirius XM, and interactive service payments for streams on Spotify/Rhapsody. And there are more.

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