Archive for November, 2009

What do Iran, Iraq, North Korea, China and the USA have in common? None of them give performers and record companies a radio right.

In the US, radio stations have built up a $16bn industry without paying a cent for the sound recordings that make up the bulk of their programming. All that could change as the Senate took a step closer to bringing in new legislation. The Senate Judiciary Committee has passed the draft Performance Rights Bill with a healthy majority. The House Judiciary also approved a similar Bill some weeks ago. The next stage is voting on the floor of both Houses on the Hill.

And this is where it gets interesting.

Up until now, the radio lobby have fiercely resisted any attempt at making them pay anything at all. Most of their arguments to date have centred around calling the licence revenue a tax, although they have held back from saying the money should therefore go to the Obama administration rather than to the performers and record companies. They have also claimed that the Bill is racist, but it is hard to see how. My favourite argument though was one radio exec claiming he was not worried as he would simply play unsigned artists. He did not reveal how long he would continue with this policy.

Now, the Judiciary Chairmen behind the Bill have urged the radio industry to smell the coffee, sit down and negotiate. There is still time, they say, to accommodate their concerns but the time for working out a deal with the music industry is now. The radio industry response has been to gather signatures on a resolution opposing the Bill. Even if the parties do sit down together, don’t expect sweet music.