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Future of Streaming

The music industry basically has a monopoly on music. It's a government licensed monopoly. Anyone who wants to use popular music has to pay for it. If they don't, it's a federal crime. So they've got the media by the short hairs. If anyone on the internet uses their music, they must follow the digital copyright act. It's all very clearly spelled out. Maybe you should read it.

I understand that. But the people in the music industry are the ones who can influence Congress to set the rates. From what I understand, Congress didn't set the streaming royalty rates in a vacuum.
 
I understand that. But the people in the music industry are the ones who can influence Congress to set the rates. From what I understand, Congress didn't set the streaming royalty rates in a vacuum.

The streaming royalty rates aren't set by Congress. They're set by the Copyright Royalty Board, a group of judges within the Library of Congress.
 
Agreed. But doesn't that require a dramatic and almost impossible change in decades engrained thinking at the agency level?

Agencies seem to understand the concept when it comes to the Internet. They know from actual connection data that anything longer than about 10 seconds causes total abandonment of a site, article or piece of content.
 
But with all respect, my reply was to your reference to terrestrial radio needing to abandon the :60. Or are you suggesting they understand that concept not only for streaming but for over the air? (Sorry I sound like that Mario500 character with that question.)
 
I find that statement surprising. I usually get 30 or 60 second, and often longer ads on YouTube, Pandora, and the various mobile apps that show me ads from time to time.

There's a couple of particular companies advertising me professional tools that created ads of 5minutes that they have paid YouTube to show me over and over. As if I'm going to watch a 5 minute ad before a 10 minute video...
 
But with all respect, my reply was to your reference to terrestrial radio needing to abandon the :60. Or are you suggesting they understand that concept not only for streaming but for over the air? (Sorry I sound like that Mario500 character with that question.)

Over the air and everywhere.
 
I find that statement surprising. I usually get 30 or 60 second, and often longer ads on YouTube, Pandora, and the various mobile apps that show me ads from time to time.

There's a couple of particular companies advertising me professional tools that created ads of 5minutes that they have paid YouTube to show me over and over. As if I'm going to watch a 5 minute ad before a 10 minute video...

I click out of anything over 10 seconds online.

That said, Pandora is modeled on traditional OTA radio; its listeners call it a "radio station" in their vast majority. They are using the traditional radio model.

Henry Ford only sold black Model T's. So if you wanted one, it was black. Radio sells based on 60's. 15's are not 25% of the 60 second rate... they are priced at a penalty.

I worked in a country (and in a market the size of New York City) where ad time was sold by the second. We had 5 second spots, 6 second ones, and so on. Each message was only as long as the message required. It worked well.
 
I tend to be gone earlier than :10.

As for over the air, why have we not seen more of a shift in that direction?
 
As for over the air, why have we not seen more of a shift in that direction?

Advertisers are convinced they need more time to sell their product. :10s work best for brand reinforcement.

The other problem with :10s is clutter. As it is, people are complaining about 6-8 spots per break. Imagine if that becomes 20 or more :10s. It'll make you dizzy.
 
So you're saying that it's an issue of both agencies and radio needing to "sell" their clients the advantages of a :10? And as those times grow smaller, isn't it also imperative to find a new balance between spot length, rate and inventory rather than simply go to an unrealistic 20 unit break?
 
So you're saying that it's an issue of both agencies and radio needing to "sell" their clients the advantages of a :10? And as those times grow smaller, isn't it also imperative to find a new balance between spot length, rate and inventory rather than simply go to an unrealistic 20 unit break?

What do you suggest?
 
As for free streaming...it's going the way of the old Napster, in the dumpster. In the dial-up file-sharing days, you took a nap while your song downloaded. Today, if there's a song you want to rip, just set your ripping software to find metadata for the songs you want, and then just wait for that song to show up on one of the myriad publicly available streams.

This is why the recording industry is adamant about .0017. Playing devil's advocate, they should go a step further and make online streaming subscription-only. You don't get to enter the beer garden with a million brews without buying a bunch of tickets at the door. Do I think it will happen? Probably not...
 
Apologies. Not attempting to be obtuse with my questioning. Most of my time is spent on the content creation side now. But as spot length grows shorter, my work will too be affected. Thus an interest in direction. Perhaps it's best we leave it at that rather than drive the topic further adrift. Cheers.
 
So you're saying that it's an issue of both agencies and radio needing to "sell" their clients the advantages of a :10? And as those times grow smaller, isn't it also imperative to find a new balance between spot length, rate and inventory rather than simply go to an unrealistic 20 unit break?

No, I am saying that tradition is getting in the way of reality. Listeners don't like ads, but 60's are the worst. Radio has a pricing model that favors the 60, so the error gets perpetuated.
 
No, I am saying that tradition is getting in the way of reality. Listeners don't like ads, but 60's are the worst. Radio has a pricing model that favors the 60, so the error gets perpetuated.

In my world the majority is :30. Maybe that's just my world. I don't see a lot of :60s except either for 1-800 or other institutional spots.
 
I see both sides on commercial length. I know I spent way too much time writing 60s when the message could fit in 10 to 20 seconds. The Radio Industry standard is 60 seconds, so there is lots of education and time before a new trend could happen.

The other issue is pricing. Most stations I worked, even in small markets, were 60 seconds or less: 15 seconds was the same as a 60 so the salesperson always felt 60 seconds didn't shortchange the client. Really the client bought to get their message out, not how long that message was.

Where there was pricing, a 60 might be $20, a 30 might be $15 and a 10 might be $7 or $8. Dollar for dollar for the station, they need 3 times the number of spots to get the same money. In addition a client isn't going to buy more units than they need, so if they normally bought 20 at 60 seconds they wouldn't buy 60 at 10 seconds instead.

Streaming has the advantage of the website to couple together for a package. The spot can be very short sending the client to a spot on the website that gives details.
 
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