Radio to Pay for Music Airplay?
Sept 4, 2007 22:15:09 GMT -5
Post by Chase on Sept 4, 2007 22:15:09 GMT -5
From radioandrecords.com
Rep. Howard Berman is radio’s nightmare in living color. Berman, the Democrat congressman who represents Hollywood and the San Fernando Valley in California, says terrestrial broadcasters get “an unfair competitive advantage" over Internet radio and satellite radio because they do not have to pay performance fees for the sound recordings they air. As chairman of the House Judiciary Subcommittee on Courts, the Internet and Intellectual Property, Berman intends to fix that.
“We are working on getting legislation ready to introduce, which the radio guys don’t like,” Berman told the San Fernando Valley Business Journal on Sunday (Sept. 2) in a Q&A session. “Anybody who is transmitting radio digitally has to pay, but over-the-air terrestrial is one platform that is exempt. They have what I think of as an unfair competitive advantage.”
Berman says, “It’s going to cost them [broadcasters] a few cents on the dollar. There will be some rate determination. They are selling commercial advertising and are drawing customers and are economically exploiting for their programming the work of someone else. That is what compensation is for.”
While Berman acknowledged that broadcasters do pay songwriters for musical compositions, he said he intends for the bill he drafts to eliminate the statutory exemption “and substitute a mechanism to determine a rate like for the musical composition for the song that is set by a rate court, based on a decision from many years ago from the Southern District of New York.” He says the rates will be based on the size of a station’s audience: The more successful a station is, the more it will pay.
Berman’s office in Washington, D.C., did not return R&R’s phone call seeking elaboration on the proposed measure.
Isn't the relationship between artists and radio quite mutual, considering that artists get free promotion for their music not to mention a royalty fee? In return, radio gets programming material. I don't know what to think about this...
Rep. Howard Berman is radio’s nightmare in living color. Berman, the Democrat congressman who represents Hollywood and the San Fernando Valley in California, says terrestrial broadcasters get “an unfair competitive advantage" over Internet radio and satellite radio because they do not have to pay performance fees for the sound recordings they air. As chairman of the House Judiciary Subcommittee on Courts, the Internet and Intellectual Property, Berman intends to fix that.
“We are working on getting legislation ready to introduce, which the radio guys don’t like,” Berman told the San Fernando Valley Business Journal on Sunday (Sept. 2) in a Q&A session. “Anybody who is transmitting radio digitally has to pay, but over-the-air terrestrial is one platform that is exempt. They have what I think of as an unfair competitive advantage.”
Berman says, “It’s going to cost them [broadcasters] a few cents on the dollar. There will be some rate determination. They are selling commercial advertising and are drawing customers and are economically exploiting for their programming the work of someone else. That is what compensation is for.”
While Berman acknowledged that broadcasters do pay songwriters for musical compositions, he said he intends for the bill he drafts to eliminate the statutory exemption “and substitute a mechanism to determine a rate like for the musical composition for the song that is set by a rate court, based on a decision from many years ago from the Southern District of New York.” He says the rates will be based on the size of a station’s audience: The more successful a station is, the more it will pay.
Berman’s office in Washington, D.C., did not return R&R’s phone call seeking elaboration on the proposed measure.
Isn't the relationship between artists and radio quite mutual, considering that artists get free promotion for their music not to mention a royalty fee? In return, radio gets programming material. I don't know what to think about this...