MBW Views is a series of exclusive columns written by notable music industry figures…who have something to say.
The following comments come from Michael Huppe, president and CEO of SoundExchange, a Washington, D.C.-based performing rights organization.
Here, Huppe shares his thoughts on Congress’s continued support for the AM Every Car Act, which, if passed into law, would require U.S. automakers to install AM radios in all new vehicles.
Meanwhile, American artists don’t get paid to have their music played on AM/FM radio. Here, Hupe explains why “it’s so important to fight for artists to be paid for radio dramas.”
There is no doubt that the music industry firmly believes that artists and other creatives should be paid for their work.
But when it comes to fighting for performance royalties on AM/FM radio dramas, some skeptics question whether efforts should be made to extract economic justice from a “moribund” medium like terrestrial radio.
But last week Congress asked why fighting for artists to be paid for their radio dramas is so important.
Following an aggressive and well-funded effort by the National Association of Broadcasters (NAB), Congress is moving to protect AM radio by forcing automakers to keep the 100-year-old technology in cars despite its interference with electric engines And will increase the noise of the car.
If the AM in Every Vehicle Act passes, the U.S. government will, for the first time, force private companies to install specific broadcast services on their vehicles.
But if AM/FM is “dying,” if radio stations are “dying,” why is this legislation so important and moving so quickly?
Why is this a priority for broadcasters this year? The legislation is a lifeline for iHeart and other wireless broadcasters that are losing market share (and cultural influence) to digital streaming services.
If the FM Every Car Act becomes law, it’s not hard to imagine broadcasters seeking to include FM broadcasts in the bill in the future. Why? Because FM broadcasters have the best prices when it comes to providing music.
“When Americans listen to music on terrestrial radio, the broadcaster does not have to pay the artist a penny for the performance, although all other digital platforms, such as satellite and Internet radio, do pay the performer.”
They exploit the public benefits of FM radio for almost free, earning $12 billion a year without paying anything for the main investment in their services – recordings.
That’s right, when Americans listen to music on terrestrial radio, the broadcaster doesn’t have to pay the artist a penny for the performance, even though all other digital platforms, like satellite and internet radio, do pay performers. This is despite the fact that all other industrialized countries pay performers.
So it stands to reason that iHeart and other broadcasters, who generate billions of dollars in advertising revenue from streaming music for free, want listeners to tune in as much as possible to terrestrial radio stations (as opposed to digital services).
There’s no question that broadcasters are working hard to ensure that Congress gives AM (and eventually FM) radio a permanent lease of life in cars.
If Congress could find the time and political will, with everything else going on in the world, to quickly implement the administration’s mandate to force century-old technology onto every new car, it could certainly solve the problem of ensuring artists are in AM/ Get paid when FM radio stations play songs.
Passing the AM Bill without addressing the issue of performance rights will condone the current backward system and allow broadcasters to continue exploiting artists.
Passing a more important law, such as the American Music Fairness Act (AMFA), would allow artists to legally get paid for performing on AM/FM radio.
So if it is vital to mandate the retention of revenue streams from a highly profitable media business sector that has consolidated, concentrated, and all but killed genuine local programming, then it is even more important to mandate fair compensation for businesses (i.e. performers) .global music business
