Democratic, GOP Lawmakers Push Again Pay-For-Play’ Bill

• Democratic and GOP Lawmakers Introduce Bill to Compensate Artists for AM/FM Airplay

Lawmakers from both sides of the aisle have introduced the American Music Fairness Act, aiming to close a significant loophole that currently exempts AM and FM radio stations from compensating artists for playing their music.

Under this proposed legislation, traditional broadcasters would be required to pay artists royalties, aligning their obligations with those already faced by digital broadcasters and streaming platforms.

"The United States stands alone among democratic nations in not requiring AM and FM radio to pay artists for their music," stated Sen. Marsha Blackburn (R-Tenn.), one of the bill's co-sponsors.

Marsha Blackburn

The bill seeks to address what advocates claim is a $200 million annual shortfall in royalties for musicians, as reported by SoundExchange, a music technology organization advocating for the bill. "For over a century, American artists have been unfairly denied compensation for their music played on traditional radio," said Harvey Mason Jr., CEO of the Recording Academy.

However, the legislation faces opposition from broadcasting groups. The National Association of Black Owned Broadcasters warns that the additional royalty fees could financially devastate local radio stations, potentially affecting their service to millions who depend on them for news, emergency alerts, weather updates, and entertainment.

"The imposition of yet another royalty on local broadcasters, on top of existing fees, is burdensome and could lead to the closure of many stations," they argue.

The National Association of Broadcasters has also criticized the bill, pointing out that it would disrupt the symbiotic relationship between artists and radio. They emphasize that radio stations operate on tight budgets to deliver free-to-air content.

The bill includes provisions for smaller stations, offering a sliding scale of royalties where stations with annual revenues under $100,000 would pay just $10 per year, provided their parent companies earn less than $10 million annually.

This legislative move marks another attempt to balance the interests of musicians with those of broadcasters, with significant implications for both the music and broadcasting industries.