One Giant Leap for Musician-kind
A few days ago the Performance Rights Act passed the Senate Judiciary Committee, approving the bill to be voted upon in Congress and potentially enact major changes in the relationship between recording artists and terrestrial radio. For those of you who don’t obsess over music publishing news, the Performance Rights Act is a bill that would force terrestrial radio to pay the artists and labels, who own the actual sound recordings they play, performance royalties in proportion to their spins. The current system reimburses composers and publishers via performance rights organizations like ASCAP and BMI, but the actual performers of the records and their labels receive only the promotional benefits. Conversely, satellite and internet streaming radio pay royalties to all parties, as do most terrestrial radio stations across the globe. In fact, the United States is one of only a handful of nations that does not, on a short list that includes Iran and North Korea.
For years, artists have cried foul and attempted to push legislation to close this “corporate loophole”, but broadcasters have fought tooth and nail to avoid the extra fees. The Performance Rights Act, championed by the MusicFirst Coalition, marks the closest such a bill has come to passing, and with the backing of Senate Judiciary Committee Chairman Patrick Leahy, it has a strong chance.
Though as musicians and music fans the issue may seem obviously unjust, it is not so black and white. Terrestrial radio, though still the most powerful way to push new music, is a dying industry, and inflicting possibly double the royalty fees on stations could cripple many of them and speed the corporatization and homogenization of radio. Also, let’s not forget labels will be getting half of these profits as well, and this push comes at a time when they are bleeding profits heavily in their traditional revenue streams.
For an excellent exploration and defense of both sides of the issue, check out this Oct. 1 interview from C-SPAN’s video archives.
If your interested in how to get involved in support of the Performance Rights Act, visit the MusicFirst Coaltion and click Take Action!
Tags: ASCAP, BMI, Chairman Leahy, music royalties, Performance Rights Act, radio