Now RIAA considers AM and FM radio piracy...

[juddling]

Recording Industry Decries AM-FM Broadcasting as 'A Form of Piracy'

 

The recording industry and U.S. radio companies have squared off for decades about whether AM and FM radio broadcasters should pay royalties to singers, musicians and their labels.

 

But now the debate is getting meaner; there's more at stake as the recording industry seeks new income avenues in the wake of wanton peer-to-peer piracy and declining CD sales in part due to the iPod and satellite radio. A U.S. House subcommittee could vote as early as Thursday on a royalty measure.

 

On Monday, the recording industry sent the National Association of Broadcasters -- the trade group representing the $16 billion a year AM-FM broadcasting business -- a can of herring to underscore that it believes its arguments against paying royalties are a red herring. The NAB says its members should not pay royalties because AM-FM radio "promotes" the music industry.

 

The herring present followed another gift -- a dictionary, a bid by the recording industry to explain what it saw as the difference between fees and taxes. The NAB describes the latest royalty proposal as a tax.

 

And two weeks ago, the recording industry, under the umbrella group musicFIRST, sent the NAB four digital downloads: "Take the Money and Run" by the Steve Miller Band; "Pay me My Money Down" by Bruce Springsteen; "Back In the U.S.S.R" by Paul McCartney and "A Change Would Do You Good" by Sheryl Crow.

 

Broadcasting music without payment is akin to piracy, the industry says.

 

"It's a form of piracy, if you will, but not in the classic sense as we think of it," said Martin Machowsky, a musicFirst spokesman. "Today we gifted them a can of herring, about their argument that they provide promotional value. We think that's a red herring. Nobody listens to the radio for the commercials."

 

The coalition includes the Recording Industry Association of America, Society of Singers, Rhythm & Blues Foundation, Recording Academy and others.

 

The argument boils down to this: Radio is making billions off the backs of recording artists and their labels; and the recording artists gain invaluable exposure because they're on the radio, so royalties should not have to be paid.

 

A House subcommittee is expected to approve a royalty bill perhaps as early as Thursday. The measure, HR 4789, sponsored by Rep. Howard Berman, D-California, would move to the full House Judiciary Committee -- legislation that the National Association of Broadcasters said would cost the industry as much as $7 billion annually.

 

An identical proposal, S 2500, is in the Senate Judiciary Committee. Rates under both proposals would be negotiated, although small and public stations would pay a flat $5,000 annually.

 

Internet, cable and satellite broadcasters pay royalties to all participants involved. Singers, musicians and the labels get no royalties when AM-FM radio broadcasters air their songs.

 

That would change under both the Senate and House proposals. Composers and songwriters, however, do get AM-FM royalties, which are set under a complicated and negotiated rate.

 

"If it wasn't for radio play, most of the performers wouldn't be known," said Dennis Wharton, a NAB vice president.

 

The group says that free airplay generates as much as $2.4 billion a year for the recording indust

 

link

[jackie hayes]

On Monday, the recording industry sent the National Association of Broadcasters -- the trade group representing the $16 billion a year AM-FM broadcasting business -- a can of herring to underscore that it believes its arguments against paying royalties are a red herring.

 

"Martin, I've been thinking -- hows about we send these guys a message? Like in The Godfather, only much stupider."

[knightni]

I guess that Payola's not what it used to be.

[FlaSoxxJim]

And the fossil American music recording industry continues to usher in its own extinction rather than adapting to a changing consumer world. They are their own worst enemy, and their legitimate arguments against things like unauthorized digital downloads get completely undermined by their own greed-driven stupidity when they launch massive legal campaigns against the stuff that actually helps sell records like trading tabs, posting lyrics online, and, you know, playing the music on the airwaves so people can hear it.

 

Idiots.

[bmags]

The demise will be beautiful.

[southsider2k5]

I thought most stations paid royalites already? I know we did when I was in college.

[kapkomet]

I thought most stations paid royalites already? I know we did when I was in college.

I don't think those royalty payments go to the artists.

[kapkomet]

And the fossil American music recording industry continues to usher in its own extinction rather than adapting to a changing consumer world. They are their own worst enemy, and their legitimate arguments against things like unauthorized digital downloads get completely undermined by their own greed-driven stupidity when they launch massive legal campaigns against the stuff that actually helps sell records like trading tabs, posting lyrics online, and, you know, playing the music on the airwaves so people can hear it.

 

Idiots.

Great post, Jim, and I agree 100%.

[SoxFanForever]

"Those guys are toast."

[Texsox]

I thought most stations paid royalites already? I know we did when I was in college.

 

That's what I was thinking when I read the article. It does seem fair to me. Jim's post makes a lot of sense until you start to think about people making millions off your work and you getting zero, that just doesn't make sense to me either. If the industry allows the free broadcast ~and~ the free downloading and sharing, how are the artist making a living?

[EvilMonkey]

That's what I was thinking when I read the article. It does seem fair to me. Jim's post makes a lot of sense until you start to think about people making millions off your work and you getting zero, that just doesn't make sense to me either. If the industry allows the free broadcast ~and~ the free downloading and sharing, how are the artist making a living?

Don't let the companies fool you, Tex. The music companies will get those royalties, the artists will get pennies. Even less, when their crap doesn't get forced on us because the stations will fill more airtime with DJ talk. The music industry as it is needs to die. I don't have the solution, but it isn't working right now.

[Texsox]

Don't let the companies fool you, Tex. The music companies will get those royalties, the artists will get pennies. Even less, when their crap doesn't get forced on us because the stations will fill more airtime with DJ talk. The music industry as it is needs to die. I don't have the solution, but it isn't working right now.

I agree about the companies getting more, but when are we going to figure out how to be fair to the artists? Should their stuff be free once it is recorded and the only way they can make money is by touring? That just doesn't seem fair to me either.

[EvilMonkey]

I agree about the companies getting more, but when are we going to figure out how to be fair to the artists? Should their stuff be free once it is recorded and the only way they can make money is by touring? That just doesn't seem fair to me either.

Next I'll have to pay a nickel every time I put a CD in my car stereo. Maybe they will take after the software people and start including ELUA's that say even though you purchased this CD, you don't really own it, you just purchased the right to listen to it at our pleasure. And if you decide to not listen to this CD again, you can't sell it, or make a copy of it, because we own it, not you. I am not saying the radio stations shouldn't pay some kind of royalties, but they are not extracting billions from them, it would kill (music) radio. While a few syndicates are making big bucks, most are not.

[southsideirish71]

From Southpark

 

Detective: Shut up!! [the boys jump in their seats, then look down, chagrined] You downloaded a lot of songs! Says here you even downloaded Judas Priest? That's hard time you boys are lookin' at. You got anything to say for yourselves?

Kyle: [rubs the table a bit] We d-didn't think it was that big a deal.

Detective: [pissed off] Not a big deal! You think downloading music for free is not a big deal?! Put your couts on! I'm gonna show you something! And I don't think you're gonna like it!

[A mansion, somewhere, day. The agent has taken the boys for a ride and arrived here. He leads them to the main gate]

Detective: This is the home of Lars Ulrich, the drummer for Metallica. [they approach a bush] Look. There's Lars now, sitting by his pool. [he's seen sitting on the edge of a chaise lounge, his face in his hands, softly sobbing]

Kyle: What's the matter with him?

Detective: This month he was hoping to have a gold-plated shark tank bar installed right next to the pool, but thanks to people downloading his music for free, he must now wait a few months before he can afford it. [a close-up of Lars sobbing] Come. There's more. [leads them away. Next seen is a small airport at night] Here's Britney Spears' private jet. Notice anything? [a shot of Britney boarding a plane, then stopping to look at it before entering] Britney used to have a Gulfstream IV. Now she's had to sell it and get a Gulfstream III because people like you chose to download her music for free. [britney gives a heavy sigh and goes inside.] The Gulfstream III doesn't even have a remote control for its surround-sound DVD system. Still think downloading music for free is no big deal?

Kyle: We... didn't realize what we were doing, eh...

Detective: That is the folly of man. Now look in this window. [they are at another mansion, and they look inside a picture window] Here you see the loving family of Master P. [He's shown tossing a basketball to his wife while his kid tries to catch it] Next week is his son's birthday and, all he's ever wanted was an island in French Polynesia. [his mom lowers the ball and gives it to the boy, who smiles, picks it up and drops it. It rolls away and he goes after it]

Kyle: So, he's gonna get it, right?

Detective: I see an island without an owner. If things keep going the way they are, the child will not get his tropical paradise.

Stan: [apologetically] We're sorry! We'll, we'll never download music for free again!

Edited June 24, 2008 by southsideirish71

[The Critic]

I love how these clueless assholes consider radio play piracy and not advertising.

They're so ass-backwards in so many ways.

With a little forethought, they could have been far ahead of the curve regarding mp3's, but instead decided to fight the trend rather than embrace it.

The demise of the recording industry would be beautiful, but unfortunately I think it'll exist in some form for a long time to come.

[juddling]

I thought most stations paid royalites already? I know we did when I was in college.

 

 

 

I remember back in the day, filling out the ASCAP logs for every song we played. It was only once or twice a year for a two week stretch each time. I thought it was for royalities.....

 

ASCAP (per Wikipedia)

[southsider2k5]

I remember back in the day, filling out the ASCAP logs for every song we played. It was only once or twice a year for a two week stretch each time. I thought it was for royalities.....

 

ASCAP (per Wikipedia)

 

Thats the impressino I was under as well...

[kapkomet]

I wonder if Bob the bat will get some royalties from the BKE?

 

 

[southsider2k5]

I wonder if Bob the bat will get some royalties from the BKE?

 

 

He should, he was funnier than you ever were

[kapkomet]

He should, he was funnier than you ever were

That was one of the funnier events of college radio, I must say.

 

 

[Texsox]

I love how these clueless assholes consider radio play piracy and not advertising.

 

Then why do they "advertise" songs for free and charge to advertise a car dealer? Would they give entertaining car ads lower rates then the boring, annoying ones? They are using the music to draw an audience to the advertising they can sell.

[FlaSoxxJim]

Then why do they "advertise" songs for free and charge to advertise a car dealer? Would they give entertaining car ads lower rates then the boring, annoying ones? They are using the music to draw an audience to the advertising they can sell.

 

Radio play is advertisement for the songs the record company sells and the artists who make them. radio ad spots bring in revenue for the station and/or it's megacorporation overlords. You know that.

[FlaSoxxJim]

I remember back in the day, filling out the ASCAP logs for every song we played. It was only once or twice a year for a two week stretch each time. I thought it was for royalities.....

 

ASCAP (per Wikipedia)

 

Thats the impressino I was under as well...

 

But the ASCAP fees go to paying the artists royalties, they don't go to the record companies.

 

[lostfan]

If all radio went away tomorrow where would the recording industry go? My first guess would be a 600 mph nose-dive into the ground.

[Texsox]

If all radio went away tomorrow where would the recording industry go? My first guess would be a 600 mph nose-dive into the ground.

 

And where would many radio stations go if there was no musicians? The markets would support just so many talk shows. They need each other.

 

Imagine if someone could publish a book and anyone could immediately copy it and print their own copies for sale next to the author's version, and call it advertising for the original owner. Has anyone ever said, I want to listen to that station that advertises Classic Rock? How many stations claim to play the most commercial free music?

 

Why can't two or three television stations head to US Cellular and cover a game as a "news story" with live, as it happens, play by play?

 

Artists are getting screwed. I can't believe stations can't cough up a bit for the recording industry.