BIA Kelsey Sees Potential Problems In Playing Pre-’72 Hits
August 4, 2015 at 11:36 AM (PT)
A new research report issued by BIA KELSEY predicted potentially dire consequences for Oldies or Classic Hits stations that play a lot of pre-1972, should the TURTLES Pre'-72 music lawsuits (NET NEWS, 5/28) lead to a performance royalty on that catalog. SVP/Chief Economist MARK FRATRIK penned the report, entitled "How Will the Radio Industry Be Affected by pre-1972 Music Performers’ Fees."
"Some ... radio stations choose formats that could easily include a substantial amount of pre-1972 recorded music," he wrote. "These formats are not generally the highest revenue and highest profitable types of programming, but over time, the competition in these local radio markets has led owners of local radio stations to choose such formats. While surviving, these radio stations are generally not generating large amounts of revenue, and thus, are marginally profitable.
"If the pending lawsuit leads to an imposition of a new performance royalty fee for all pre-1972 recorded programming, the impact on these stations could be quite dire," he concluded. "The amounts that may be imposed for airing this programming in the recent past may tax these stations dramatically. Moreover, these stations may be forced to either go off the air or move to a second best alternative format as a result."
Read the entire report here.