RAB: Radio's digital revenues grew last quarter, and in 2012 overall

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Issue Date: 
Feb 19 2013 - 12:20pm

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Radio's digital revenue was part of the good news the Radio Advertising Bureau had for broadcasters on Friday.

The RAB's earnings report shows radio's Q4 2012 was up 4% (highest over the past eight quarters), and full-year spending rose for the third consecutive year. Digital revenue for radio was up 11% ($206 million) in the fourth quarter, and 8% in 2012 overall ($767 million). According to the RAB figures, digital now accounts for about 4.7% of radio's revenue.

RAB president & CEO Erica Farber will keynote RAIN Summit West April 7 in Las Vegas.

The RAB earnings press release is here.

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Consequences of streaming on advertising

Given the court ruling in Australia (2/19 RAIN) and the prediction the streaming may come to an end, what would the consequences be of the same thing happening in the U.S.? If the royalties get too high and music streaming comes to a crawl, what would that do to advertising revenue? My guess, it drops and drops significantly. The point? The law of unintended consequences kicks in. There's more than just royalties at stake, it's a whole business infrastructure. Short term gain, usually brings long term pain.

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