The Recording Industry Association of America (RIAA) recently released the revenue figures of recorded music over the previous year, i.e., 2014. RIAA figures indicate a trend that is challenging the familiarity of digital music, which everyone has known in the recent history. While the total revenue indicates a flat graph, it still doesn’t reinforce the stability of the music industry. Sirius XM Holdings Inc. (NASDAQ:SIRI), the satellite radio, gets its attention for the RIAA in the SoundExchange Distributions category.
The RIAA’s Special Category- SoundExchange Distributions
RIAA doesn’t particularly pin point the revenue from services like the Internet radio. This is the reason why RIAA revenue figures did not specially mention or highlight the growth of margin from services like iHeartRadio and Pandora of Pandora Media Inc (NYSE:P). Instead, the organization has knobbed the revenue from Internet radio to this special aforesaid category.
SoundExchange primarily is the NPO which accumulates and distributes the royalties from three kinds of digital radio services, viz. satellite radio, i.e., SiriusXM, Internet radio and functionalities such as Music Choice. The last kind of service is the supplier of radio to digital pay televisions and cable.
The SoundExchange Revenue
SoundExchange has never segregated the revenue figures in these three categories. However, RIAA has revealed that the revenue in three categories (combined) increased by 31% in the previous year, in comparison to 2013. Also, it highlighted the fact that digital TV radio as well as satellite radio, i.e., Sirius XM Holdings Inc. (NASDAQ:SIRI), revenues were increasing at a snail’s pace. This indicates that royalties of music from the Internet radio alone, might be growing rapidly than the clubbed 31%.
The Unsaid Story
Interestingly the revenue figures revealed by RIAA do not give the bigger picture because they include merely the music recordings records. It fails to highlight the position of revenue and its growth or downfall from the music compositions, i.e., the amount paid to songwriters and publishers. This information is collected by BMI and ASCAP.