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[Turbo Ninja]

The RIAA and several artists' groups are getting ready to push Congress to repeal an exemption that allows broadcast radio stations to avoid royalty fees.

This article explains both sides.  The broadcasters obviously want to continue the mutually beneficial "free music for free promotion" relationship, while the artists suddenly think they've been getting hosed for 70 years now that they've seen they can charge for Internet performances.

As a former radio station employee, I know that Clear Channel, Wilks, Saga, etc. are already starving themselves over every last dollar of profit in their daily operations.  Would they bother to play/promote songs if the exposure ended up costing more than it made?  It's the same dilemma that Web radio is facing with the new royalty fee structure, and the future of that medium doesn't look good for smaller operators who can't afford to run as a loss leader.

I know the direct impact radio has on album sales has been fragmented over the last five years or so, but can the labels and industry groups really think they're being hosed by the whole arrangement?

[CortJstr]

Doesn't terrestrial radio already have to pay fees to the songwriter? They're just currently exempt from paying royalties to the artist performing the songs, if I'm remembering this right. So now they want the stations to pay ASCAP and the RIAA's new branch?

[theinevitable]

my radio station is possibly going to get utterly hosed next year. They just cut our budget by a lot, and we were just starting to pay royalties for our internet broadcast.

[Turbo Ninja]

Stations are already paying fees to BMI, ASCAP, SESAC and any other agencies that represent publishers and composers.  This new deal would add the performers and labels to the gravy train.

My hometown CD101 actually prides itself on its relationship with record labels and its ability to help sell records in Columbus for emerging/relatively obscure artists.  A huge portion of the station's promotional presence is tied to bands leaning on the radio station for publicity, and it has resulted in a successful symbiotic arrangement in our fly-over (or drive-through, on the way between Cincinnati and Cleveland) market. 

The major labels might not feel like they need 35 spins a week in Columbus to move a new album but that's the difference between breakout success or irrelevance for smaller acts and smaller labels.

[Golfhaus]

Huh. I guess Pop Really Will Eat Itself. I'm guessing next the RIAA will target people they catch humming a tune down the street. "Let's see, you walked half a block, with 42 people in listening distance along the way... that'll be $84.00, please."

[Doc]

How do publishers =/= labels?

[pmcd9]

This is wonderful news.  The radio sucks so much cock these days I almost never listen to it.  Now maybe they'll start playing good music by indy bands that are craving exposure and leave the pay for play big label crapola on the shelves.

Oh no you say, how will we survive without our classic rock station playing Wish You Were Here 6 times a day?

[Doc]

Damn Paul, bringing the rage.
I always get into arguments with the lady over radio, we can never ever agree on a station and can rarely suffer each others stations without reminding each other of it.

[CortJstr]

How do publishers =/= labels?

IIRC, the publishers represent the songwriters not the artists. For many bands this is the same but lots of bands record covers, and some bands basically do nothing but. So under the current rules if a station plays The Monkees - I'm a Believer then Neil Diamond gets paid via the royalties paid to the publisher. The Monkees don't get a dime.

[jaydub]

IIRC, the publishers represent the songwriters not the artists. For many bands this is the same but lots of bands record covers, and some bands basically do nothing but. So under the current rules if a station plays The Monkees - I'm a Believer then Neil Diamond gets paid via the royalties paid to the publisher. The Monkees don't get a dime.

Interesting.  Performance is worthless?

[CortJstr]

Interesting.  Performance is worthless?

The idea was the radio play is free advertising for the band because radio play promotes album sales. But since the songwriter may have no affiliation with the band at all they still need to get paid, especially since the DJ would never bother to tell you who actually wrote that last Elvis song.