Savannah Music Group Proposes Opt-Out Clause To Performance Royalty Act
August 10, 2010 at 8:22 AM (PT)
SAVANNAH MUSIC GROUP and its subsidiary, SAVANNAH RECORDS, are calling for CONGRESS to add an opt-out clause to the proposed PERFORMANCE ROYALTY ACT that would “allow radio stations to play the music of new and independent labels without additional payment to musicians and record labels.” The proposal would leave existing writers and publishers' royalties in tact.
The NATIONAL ASSOCIATION OF BROADCASTERS (NAB) produced a set of “proposed terms under consideration” on FRIDAY (8/6), which include performance royalties for radio. Historically, radio stations have not been obligated to pay record companies or artists because of the promotional value of airplay.
SMG CEO and co-founder JEFF COHEN said: “This capitulation is a disaster not only for radio, but for independent artists, independent record labels and songwriters as well.”
SAVANNAH President and creative head DAVE GIBSON added: “I understand the politics of the NAB wanting to get ahead of a Congressional steamroller, but there is no sense in flattening all the independents and creative shops in the process.”
To read the entire story on SMG’s proposal, click here.