what is the cost to radio stations

[alancubitt]

My friend insists that each time a record is played on the radio the station has to pay upwards of �70 in royalties. This seems a lot of money! Can anyone confirm or deny this please.

[andy hughes]

Your friend is correct in principle, but the matter of royalty payments is quite complex
When a radio station plays a record, a royalty rate is paid, which is split equally between the writer and the publisher of the song. Although the publisher's rate may not be the full 50%, it cannot exceed that amount.
When Radio One plays a single, the royalty rate is currently �15.14 per minute, so for a four minute single, that would work out around the �60 mark. Ther rate is re-negotiated every six months, but fluctuations in payment rates remain fairly static.
For commercial radio stations, rates are assessed using a variety of factors, including the size of the station, in terms of its audience, and any pre-arranged flat rate agreements. Because of the many and various factors involved, rates can vary between 50p and �20 per minute, and in some cases royalties are not accrued at all, due to the exceedingly complicated systems which are far too difficult to unravel here.
If you use the Radio One scale as a basic guide, you get a rough idea of the payment rates each time your favourite artists warbles down the airwaves, and a 'ker-ching' sounds in their writers' and publishers' bank accounts.