Media Institute: Music Royalty Is An 'Undue Burden'
February 5, 2010 at 6:32 AM (PT)
A proposed "compulsory-license scheme that would force radio broadcasters to pay royalties to musical artists and record labels would impose an undue economic burden on broadcasters already racked by the recession," writes RICHARD T. KAPLAR in a paper published by THE MEDIA INSTITUTE, which claims "the plan would likely reduce broadcast radio diversity, especially among small and minority-owned stations."
The paper notes that radio broadcasters and record labels have enjoyed a "mutually beneficial economic relationship" in which broadcasters play recordings available for free, thereby building audiences and ad revenue, while record labels get the benefit of that free airplay to boost record sales.
Minority broadcasters are said to have the most to lose, as the paper writes "Black and Hispanic stations, many of which already struggle for ad revenue and financing, would bear the brunt of compulsory 'performance fees' for sound recordings. The loss of such stations would be particularly acute for Black and Hispanic communities where local radio stations are 'a primary venue for the expression of minority and ethnic viewpoints.'"
"Performance Fees on Radio Stations: A Debacle Waiting To Happen," was written by THE MEDIA INSTITUTE VP RICHARD T. KAPLAR. The Policy Views paper is available on the Institute’s website, and is also available in hard copy.