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

**min0 lee** · 06-24-2008, 05:52 AM

Recording Industry Decries AM-FM Broadcasting as 'A Form of Piracy' | Threat Level from Wired.com

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 industry

**DOMS** · 06-24-2008, 06:23 AM

And so they hasten their destiny to join the buggy makers.

**bio-chem** · 06-24-2008, 08:23 AM

i dont get it. for years were they not the ones releasing singles to the radio stations in an effort to drive up allbum sales? this seems like your shooting yourself in the foot.

**Dale Mabry** · 06-24-2008, 11:16 AM

I would love nothing more than for the recording industry to tank and go through a severe change. It would be great if the ticketmasters of the world were somehow involved as well.

The wrong people are getting rich off of music, I would love nothing more than to see the artists and songwriters make more and the execs making less.

**ZECH** · 06-24-2008, 01:26 PM

Why do we even need them anymore? With Al Gores internet, the musicians can promote their own music.

**tucker01** · 06-24-2008, 01:57 PM

I don't know who is the bigger douche, the recording industry or the NAB.

**Dale Mabry** · 06-25-2008, 05:42 AM

Originally Posted by dg806

Why do we even need them anymore? With Al Gores internet, the musicians can promote their own music.

Exactly. The industry is changing and the unnecessary link is scared shitless it is no longer needed. After years of gouging, $16 for a $.50 CD with 1 good song, music is a fair industry. Actually, more than fair when you know how to procure albums for friz-ee

**The Monkey Man** · 06-25-2008, 06:26 AM

Originally Posted by Dale Mabry

I would love nothing more than for the recording industry to tank and go through a severe change. It would be great if the ticketmasters of the world were somehow involved as well.

The wrong people are getting rich off of music, I would love nothing more than to see the artists and songwriters make more and the execs making less.

Lets just cut through the Haze right now...

We're talking about clear channel.
They are a monopoly which controls all the radio output
half of the record labels, and most of the live venues,
and most of our beloved politicians.

I stopped seeing any live music act that was promoted by clearchannel a few years ago... They wont get my money..

I have been supporting the record industry though
But the kind of labels I buy, usually dont fall into the category of one of those HUGE promotion corps like atlantic, or sony, or whatever.

**Dale Mabry** · 06-25-2008, 06:35 AM

If they owned everything, why would they be trying to get royalties from themself?

**KelJu** · 06-25-2008, 10:28 AM

Originally Posted by Dale Mabry

Exactly. The industry is changing and the unnecessary link is scared shitless it is no longer needed. After years of gouging, $16 for a $.50 CD with 1 good song, music is a fair industry. Actually, more than fair when you know how to procure albums for friz-ee

THe RIAA created the need for mp3 and file sharing. The RIAA dug their own hole over charging for music. Now they want to go after clear channel because it is yet another way that people can get music without going through them. Well fuck um. I hope the RIAA dies a painful death. Artist need to sell directly over the internet anyway.

**DaMayor** · 06-25-2008, 11:36 AM

So were do ASCAP and BMI factor into this? I thought they were responsible for collecting royalties due the artists and writers.

**maniclion** · 06-25-2008, 08:17 PM

Both of them can fucking jerk each other off for all I care, I hate the RIAA and I hate broadcast radio, the only thing I listen to is NPR and they get their money from their listeners. Both of them don't have music's best interest in mind they just want to push the most product onto the most brainwashed people they don't care if the quality of the music is their or not. Music should be an art first not a business first, yes musicians should get paid but they should earn it by making good art not just catchy noise for the masses......

**KelJu** · 06-26-2008, 09:24 AM

Originally Posted by maniclion

Both of them can fucking jerk each other off for all I care, I hate the RIAA and I hate broadcast radio, the only thing I listen to is NPR and they get their money from their listeners. Both of them don't have music's best interest in mind they just want to push the most product onto the most brainwashed people they don't care if the quality of the music is their or not. Music should be an art first not a business first, yes musicians should get paid but they should earn it by making good art not just catchy noise for the masses......

**min0 lee** · 06-26-2008, 09:27 AM

Originally Posted by maniclion

Both of them can fucking jerk each other off for all I care, I hate the RIAA and I hate broadcast radio, the only thing I listen to is NPR and they get their money from their listeners. Both of them don't have music's best interest in mind they just want to push the most product onto the most brainwashed people they don't care if the quality of the music is their or not. Music should be an art first not a business first, yes musicians should get paid but they should earn it by making good art not just catchy noise for the masses......

**KelJu** · 06-26-2008, 09:42 AM

Originally Posted by min0 lee

Fucking copycat!

**min0 lee** · 06-26-2008, 09:45 AM

Originally Posted by KelJu

Fucking copycat!

You don't own the copyright....and no, it's not piracy!

Â©

There.

**YSK** · 06-26-2008, 03:33 PM

im sick of all that shit, i was ok with it since im up here in canada but now there getting their dirty little hands into passing these fucked up bills to squeeze every little dime outta every oppurtunity.

**DOMS** · 06-26-2008, 04:50 PM

Originally Posted by YSK

im sick of all that shit, i was ok with it since im up here in canada but now there getting their dirty little hands into passing these fucked up bills to squeeze every little dime outta every oppurtunity.

You do realize that you have your own version of the RIAA, right? It's called the Canadian Recording Industry Association. They're the ones making the shitty laws in your country.

**YSK** · 06-26-2008, 07:21 PM

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