Internet radio station is successful because the Internet radio is controlled by the listener. Users of these sites make their own decision as to what they like to listen to. But searching for what they want to listen to will be difficult and in some ways expensive. That is why the Digital Millennium Copyright Act of 1998 has regulated Internet radio to make sure that proper royalties must be paid. Terrestrial radio stations pay royalties only to songwriters when their songs are played on air. Internet radio stations have to pay both royalties to songwriters and performance royalties to the artist performing the song. Moreover, Internet radio stations also pay a flat fee to run the station and fees to host the website and domain name.
But despite being costly and expensive, Internet radio stations will always turn out to be a success for many other reasons.
Reasons for the Success of Internet Radio Station
- The Internet radio is playing a major role in the lives of many people. Streaming songs on demand has become the most important feature of Internet radio.
- Smartphones users would rather use a web-based app to listen to radio on their device that listen to a broadcast service.
- Internet radio stations provides a multimedia interactive and social experience. Their audience are continuously interacting with the various features on its player. It can even be considered as a website.
- Audience targeting on Internet radio creates higher value advertising. Some Internet radio stations have sophisticated targeting capabilities that allows them to sell ads at a very high rate.
- An engaged mobile audience has great value for advertisers. Mobile marketing is constantly increasing and may hit the one billion dollar mark by the end of this year. Internet radio is highly mobile. Its users are always downloading the mobile app, and are increasing and growing. Mobiles target its listeners down to where they are physically located.
- Internet radio stations market relationship is not with advertisers. Their relationship is with the listeners. Listeners just click on a PayPal or Amazon link and after a few more clocks they have made a payment.
The Internet radio will soon dominate the radio industry. Though it may not make sufficient impact on the radio industry, today, to replace all forms of existing radios, there is certainty that it will make its way up.