Posts by KenJ 9 publicly visible posts • joined 15 Mar 2013
"Commercial TV stations earn most of the money from advertising."
The problem is that in the US, commercial OTA broadcasters make a significant amount of revenue from mandatory payments by cable TV systems. If the OTA stations allow Aereo to exist, the exclusivity value they can extract from the cable companies drops and they receive less revenue in that channel. Worst case, the cable companies adopt the same scheme and don't pay local stations anything.
US terrestrial radio stations pay what are known as mechanicals, which are payments to the song composer(s)/publisher. They also pay license fees the major recording societies (ASCAP, BMI, and SESAC) which in turn are distributed to the artist. Unlike the UK, they do not pay the studio any payment for the recording as it has long been agreed that the studios gain far more in record sales from the promotion of the song on the radio. As terrestial radio becomes less and less important in record promotion, this may change.
Its even better for Adobe than is first seen. Boxed software sold through distributors / retailers nets Adobe someone where between 35-40% of the retail price. By going online download only, Adobe captures all the product revenue and avoids manufacturing and inventory expense. Not so clear what the benefits for the consumer is.
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