Tuesday, September 9, 2014

MusicFirst Wants FCC To Probe Stations Refusing Pro Royalty Ads

In light of new allegations that the National Association of Broadcasters television members are refusing to air ads in favor of “Local Choice” legislation, the musicFIRST Coalition Monday asked the Federal Communications Commission to expand and take action on an open proceeding concerning a similar refusal by NAB radio members to air advertisements in support of the Performance Rights Act.

In 2009, the musicFIRST Coalition supported legislation to establish a performance right for AM/FM radio. Under current law, Satellite and Internet radio pay performers and copyright owners when their songs are played — only AM/FM radio is exempted.  NAB radio members refused to sell the Coalition ad time for ads in favor of legislation requiring fair pay for performers and copyright owners, even though they ran their own advocacy ads opposing this proposal misleadingly labeled “public service announcements.”

MusicFirst also asserts broadcasters also appeared to evade public file requirements with such mislabeling, and allegedly threatened retaliation against recording artists who spoke out in favor of the legislation.

The Coalition petitioned the FCC and that petition remains open. (A copy of the complaint, the FCC’s request for comment, and the current status of the proceeding are hyperlinked.)

This summer, it was widely reported that CBS television stations are refusing to air ads in support of the “Local Choice” proposal authored by Senators Rockefeller and Thune.  “Local Choice” would allow consumers to decide on an “a la carte” basis whether to purchase local television stations as part of satellite or cable TV subscriptions.  While the Coalition has no position on the underlying legislation, broadcasters' familiar tactic of refusing to air views that run contrary to their policy views and financial interests is patently unfair and a potential abuse of the broadcasters' stewardship of the public airwaves.  It is exactly the same kind of distortion of the public policy debate we complained of in our earlier filing.

In his letter to the FCC, musicFIRST Coalition Executive Director Ted Kalo made the following statement:

"Broadcasters’ licenses to use the public’s airwaves are not blank checks for the NAB to advance its narrow political and pecuniary agenda: they exist to serve the public. Presenting only one side of a public policy issue in this way mis-serves the public and skews the policy debate. And if this pattern of abuse is allowed to continue unchecked, it will only grow more widespread and sophisticated, and the NAB and its members will only dominate our policy discourse even more.”

The musicFIRST Coalition was founded by a broad spectrum of organizations representing musicians, recording artists, managers, music businesses and performance right advocates. We’ve since then expanded our unanimous music industry support to include dozens of partner organizations and groups supporting a performance right. And of course the fantastic community of musicians and recording artists.

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