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Wednesday, December 10, 2025

Congress Moves Closer to Ending Radio’s 100-Year-Free Ride

Gene Simmons

A Senate hearing Tuesday, brought the American Music Fairness Act (AMFA) closer to reality than ever before, with KISS co-founder Gene Simmons declaring opposition to performance royalties on AM/FM radio “un-American” and vowing the issue will finally be resolved in the current Congress.

The bipartisan bill would require terrestrial radio stations — currently the only major music platform in the world that pays no royalty to performers or copyright owners of sound recordings — to begin compensating artists, aligning U.S. law with every other developed nation.

Key developments from the hearing:
  • Gene Simmons testified without notes, calling the exemption an “injustice” and highlighting that even Russia pays royalties to Elvis Presley’s estate while U.S. radio does not.
  • SoundExchange CEO Michael Huppe stated the change would generate hundreds of millions annually for artists, with 80 % going directly to performers.
  • Ranking Member Adam Schiff (D-CA) emphasized that foreign countries withhold approximately $70 million a year from American artists because the U.S. refuses to pay their performers.
  • Broadcasters, led by NAB board member Henry Hinton, warned that new fees could exceed $500 million industry-wide and force smaller stations to shrink playlists or close.
Bill provisions:
  • Small commercial stations (under $1.5 million annual revenue) and non-commercial stations would pay a maximum of $500 per year.
  • Larger stations would pay market-rate royalties collected and distributed by SoundExchange.
  • No payments would go to record labels; featured artists receive 80 %, session musicians and background vocalists split the rest.

The National Association of Broadcasters continues to back the competing Local Radio Freedom Act, which has near-majority support in the House and pledges to block any new performance fee.

Despite the opposition, momentum has shifted: this was the first Senate hearing on the issue in over a decade, and both Republican and Democratic members signaled willingness to negotiate a compromise before the 119th Congress adjourns.

If passed, AMFA would end the last major exemption allowing free use of recorded music on a for-profit platform and fundamentally alter the economics of U.S. radio broadcasting.