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AFTRA Contract Contributes to Online Drop

AFTRA Contract Contributes to Online Drop

MeasureCast notes in its weekly Internet Radio Index report that online listening declined five percent during the week of April 9 to 15. The Net radio ranker attributes the decline to AFTRA’s recorded commercials contract as AFTRA-represented ad trade groups sent a letter to advertisers reminding them that the new, 300 percent increase in fees for all terrestrial commercials played on the Internet would begin to be enforced.
The Internet fees were negotiated as part of the contract settlement between advertising agencies and AFTRA last fall.
After the letter was mailed, advertisers informed stations they would not pay the additional Internet fees and so many stations that had been streaming their terrestrial signals stopped during the week of April 13th.