SXSWorld
Issue link: https://sxsw.uberflip.com/i/211359
"... we've crossed a watershed moment ... Internet radio has gained its footing as connected devices are ushering in a whole new era of personalized listening." revenues or subscription fees for startups, the business struggles have seemed downright existential. Failed experiments (Zune, anybody?) litter the past two decades, while some older survivors—Rhapsody, Spotify—carry on in perpetual monetization turmoil. "Last year," observes Kurt Hanson, in RAIN, an Internet-radio newsletter, "Pandora paid more than 50% of its revenue in royalty payments and as a result, as seen in their SEC filings, the company has yet to make a profit. And if the leading firm in an industry has trouble breaking even, you may reasonably (and correctly) assume that most other webcasters are struggling even more." Nevertheless, SoundExchange, the nonprofit collecting royalties on behalf of copyright holders and record companies, distributed some $462 million in digital performance royalties in 2012—a 58% increase over 2011. "As digital radio continues to grow," SoundExchange president Michael Huppe recently announced, "so should the amount that performing artists and rights owners receive for the use of their content." Ratings vs. monetization. Innovation vs. artist payment. Ever-creative startups vs. multimedia giants. iTunes Radio! A wild frontier vibe full of unpredictable industry mood swings prevails. "Whenever you introduce such fundamental change to a very large and very powerful industry," explains Westergren, "you have opposition. [Pandora has] faced steady resistance from large content and media companies, but ultimately, the raw demand from consumers and the magnitude of the opportunity for artists has repeatedly overwhelmed any effort by traditional media to keep us down. Internet radio is the future." And it will do anything its listeners advise ... n SXSWfm, the Official Online Radio Channel of SXSW, is the source for discovering music by the many great artists who have played SXSW since its inaugural year in 1987. SXSWfm can guide you through SXSW's rich history of performers and introduce you to 2014 Showcasing Artists when they are announced later this fall. Tune in at sxswfm.com to hear stories and insights about many of these great past and present showcasing artists. You can also read the SXSWfm Blog for daily posts about SXSW artists, album reviews, weekly music adds, insights into the history of SXSW and more! Tune in all year long as we guide you through the music of SXSW. We have plenty of new features in the works, including a mobile app and specialty show archives. For now, you can still listen to SXSWfm on your smartphone or desktop. Visit sxswfm.com or player.sxswfm.com to listen today. SXSWORLD / NOVEMBER 2013 23