Economics of Radio Blanket License: Format, Region, and Market Size

  • Ivan L. Pitt


In this chapter, we take a look at one of the sources of income for a PRO, the licensing fees paid by one set of music users, commercial radio stations. PROs deduct a percentage off the licensing fees collected to cover the administrative costs of music copyright licensing. The remaining amount is then distributed to songwriters, composers, and publishers as income from music performances. The income for PROs, songwriters, composers, and publishers are dependent on many factors affecting the radio blanket license fees paid by music users. It is, therefore, important to understand the determinants that drive the licensing fee income. An econometric model has been developed that looks at the fee structure involved in the radio blanket license, and explains the variation of the blanket fees in terms of radio format, station owners, region, market size, and recorded plays.


Market Size Radio Station Music Industry Radio Performance Advertising Revenue 
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Copyright information

© Springer Science+Business Media, LLC 2010

Authors and Affiliations

  1. 1.American Society of Composers, Authors and PublishersNew YorkUSA

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