NAB Opposes New Bill Requiring Radio Pay for Play Royalties

Lawmakers Introduce Performance Royalty Bill

The United States is the only major country in the world where terrestrial radio pays no royalties to performers or recorded-music copyright owners of the songs they play, a situation that is largely due to the powerful radio lobby’s influence in Congress, reports Variety. While the more than 8,300 AM and FM stations across the country pay royalties to songwriters, they have never paid performers or copyright holders, although streaming services do.

U-S Representatives Ted Deutch (D-FL) and Darrell Issa (R-CA) Thursday introduced a new bill that would require AM/FM stations to pay performance royalties to music creators and copyright holders for radio airplay.

The American Music Fairness Act (AMFA) is at least partially in response to the Local Radio Freedom Act that Steve Womack (R-AR) and Kathy Castor (D-FL) introduced last month, which is championed by the National Association of Broadcasters. That act aims to continue terrestrial radio’s royalty-free status, stating that Congress should not impose any new performance royalty or other charges that might create economic hardship for locally owned radio stations. Some 138 Representatives and 18 Senators have signed that non-binding resolution; Senators Martin Heinrich (D-NM) and John Barrasso (R-WY) are championing similar legislation in the Senate.

Singer Dionne Warwick

Variety notes that while still a powerful force, terrestrial radio is rapidly losing audience to streaming services, satellite radio, podcasts and other broadcasters, and once streaming services become widely available in cars, that decline is likely to accelerate dramatically. Champions of the Local Radio Freedom Act are using that threat as an argument for radio to continue to pay no royalties to performers and copyright holders.

“The Local Radio Freedom Act is a non-binding resolution that reaffirms Congress’s support for local radio stations and opposes new fees or taxes on local, free, broadcast radio which could jeopardize those very services upon which so many rely,” Castor said in a statement.

In response to the introduction of the legislation, the following statement was released by  NAB President and CEO Gordon Smith:

“NAB strongly opposes the American Music Fairness Act or any imposition of a performance royalty on America’s local radio stations. For decades, broadcast radio has enjoyed a mutually beneficial relationship with the music industry, launching and sustaining the careers of countless artists, promoting album sales and streams, and helping to foster a robust music-creation environment that is the envy of the world.

“Broadcasters remain open to working with the record labels to reach a comprehensive and reasonable solution to this issue that reflects the incredible value provided by local radio to musicians, labels and our millions of listeners over-the-air and online. It is unfortunate that the record industry refuses to have those discussions.”