A h M u s e I n d u s t r y R e c o r d i n g A s s o c i a t i o n O f A m e r i c a

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Radio Structure

The Reinvention Of Radio!

AIBN Radio Example:

The AIRAA received a royalty check from a “Syndicated Radio Show.” Let’s say the show is a 1 hour syndicated radio program called, “The Morning Drive.” Let’s further say that the show generated $1,000 in “sponsorship revenues” during the 1 hour period.

For radio stations that are AIRAA compliant, the model pays out shares based on the following royalty distribution schedule:

1. The individual radio stations that played the 1 hour syndicated program, will continue to receive it’s income from it’s station advertisers.

2. The syndicated radio program, “The Morning Drive,” is paid $1,000 from it’s “Show Sponsors.” This is made possible by the show programming a total of 60 seconds for sponsor advertisements before each station break (up to 3 sponsors @ 20 seconds each). The more stations playing the show, the more money the show sponsors will pay.

3. The Syndicated radio program then split’s the revenue with the AIRAA. 80% share is retained by “The Morning Drive,” and the remaining 20% share going to the AIRAA for royalty distribution.

4. Once the AIRAA receives payment, the following distribution takes place:
The AIRAA received a royalty check for $200 from the “The Morning Drive.”

AIRAA FEE $20 (10% off the top / 90% left over for distribution)
This leaves a "net" distribution balance of $180:

Author(s) of Works 10%  Account $18

Artists/Performer(s) 20%  Account $36

Producer(s) 10%  Account $18 

Musicianship 10%  Account $18 

Investor(s) 40%  Account   $72 

Administrator 10%  Account   $18

The last calculation will divide the number of songs that played on the 1 hour show. If this number happens to be 10 songs, the individual royalties will be paid as follows:

Author(s) of Works 10%  Royalty $1.80

Artist / Performer(s) 20%  Royalty $3.60

Producer(s) 10%  Royalty $1.80 

Musicianship 10%  Royalty $1.80 

Investor(s) 40%  Royalty   $7.20 

Administrator 10%  Royalty   $1.80

Not bad; 10 songs and all involved will get this money. If your song is playing many times per day; by the end of the month this will add up. Can you imagine when your song is playing on 10 different syndicated shows and many times per day. 

Remember, this is just one revenue stream, and a syndicated radio show can easily make 10 times the amount used in the example. The days of music playing on the air and not getting paid for it is over! That’s the beauty of the AIRAA business model.

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