On 25/01/2011 07:52 AM, scott wrote:
>>> The radio station pays a fee every time they play a song.
>>
>> And that fee is identical regardless of whether they have two thousand
>> listeners or zero listeners.
>
> Are you sure that is correct? It seems very odd that the song owners
> wouldn't charge more for stations that have higher audience figures. It
> would mean they'd have to charge an totally insignificant amount to the
> big stations in order for small ones to be financially possible.

Well, since it's impossible to know how many people are listening at any 
given instant in time, the price cannot possibly be determined by the 
number of listeners. Oh, they probably have some vague statistics to 
suggest approximately how many people listen on average to a given 
station. But you cannot know the true numbers at any specific moment. 
If, by some fluke, you had zero listeners for a few minutes, the fees 
wouldn't change. If, by some freak of nature, millions of people 
suddenly tuned into an unpopular station, their fees wouldn't change.

Post a reply to this message