Whether you call it a fee, a tax or a royalty, the American Music “Fairness” Act (AMFA) will hurt the very artists that it claims to help by having a profound effect on one of their most impactful outlets: local radio stations around the country.
Just like some artists, thousands of radio stations around the country are struggling in the aftermath of a pandemic. Stations across the country could pay hundreds of thousands of dollars in new royalties. Even the AMFA’s “starter fee” would absolutely impact their ability to pay salaries, utility bills and cover local news, and that the fee will only get larger in the years to come.
Want to ensure artists get less airtime? Pass the AMFA.
Artists and record executives alike acknowledge that radio is responsible for launching the careers of countless artists, entertaining tens of millions of people every day, generating billions of dollars in music, ticket and merchandise sales, and producing a music-creation ecosystem that is the envy of the world.
The AMFA is completely one-sided, addressing only one element of what should be a much broader discussion. A system as complex as the music licensing regime that for years has allowed artists, record labels and radio stations to thrive, deserves a holistic look if it’s no longer serving the interests of those who depend on it.
That’s why four years ago, lawmakers on both sides of the aisle requested that radio broadcasters and the music industry work together to reach a resolution to the performance royalty issue that could benefit all sides. Broadcasters showed up for these negotiations. We rolled up our sleeves and offered proposal after proposal. But it’s hard to dance when you don’t have a willing partner.
The record label execs who criticize local radio while at the same time asking for airplay for their artists refused to engage in meaningful negotiations and repeatedly rebuffed every proposal we put on the table. Instead, they prefer to lob insults through the press and hide behind the artists they claim to represent.
We once again find ourselves talking about the same old story – a performance fee that fails to balance the needs of thousands of local radio stations or create a system that would spark innovation, benefit listeners and offer prosperity for music creators. Instead, under this proposal, the most-popular artists and the three largest record labels – which earned more than $2.5 million every hour last year – will continue to line their pockets with the largest share of music royalties, leaving the little guys behind.
NAB waits patiently to resume meaningful discussions with the music industry on a framework that addresses a performance royalty while also providing for more reasonable streaming rates. By lowering barriers to entry and making streaming more affordable for broadcasters, we can allow more radio stations to invest in online delivery of music and grow the pot of digital revenues for music creators. We can work together to ensure a rising tide lifts all boats: radio and creators.
There are major incentives for both radio stations and music creators to work together on a better music licensing framework that benefits broadcasters, artists and listeners.
It is my sincere hope that the music industry will join us at the negotiating table so we may find a comprehensive approach forward, because their endless pursuit of a one-sided solution will continue to leave this issue unsettled and punish the musical creators proponents of this bill claim to want to help.
