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As Labels Demand Higher Royalties, Radio Could Charge For Airplay

A NEW BRAND OF LEGAL PAYOLA

A battle is raging in Washington over requests by labels and artists to charge radio broadcasters more for playing music. Currently only the songwriter gets paid for the airplay via ASCAP, BMI and SESAC. Nothing goes to the performer.

Sounds unfair. But change often has unforseen consequences. Is now when radio is faltering, the right time to ask for money or will it push more music off the air? And does charging more break the implicit promotional contract between artists, their record companies and broadcast radio?

Music Attorney David Oxenford  believes that new efforts to charge radio more for playing music breaks the promotional “bargain” between labels and broadcasters would be voided with the proposed legislation and put broadcasters "in the position where they could charge the labels or the artists money for playing those songs and getting promotional value.”.

Nokia Adds Net Radio

Watch out broadcasters...

How Much Would Radio Pay In Perfomance Royalties?

National Association Of Broadcasters say
10-35% of revenue
        vs.
musicFIRST says
3% of revenue

Who is telling the truth? 

WFUV Uses Payola Funds To Launch Second NYC Station

Non-commercial Triple A WFUV-FM in NYC is using $500,000 in funds from the NY State Music Fund set up after last year's payola probe to launch a second station via HD, internet and mobile streaming. This second station to launch in 2008 will be aimed at the 20-30 year old alt-rock set. Total costs are estimated at $1.2 million.

"Acts like Antibalas, Forro In The Dark and The Hold Steady have no problem selling out venues all over town, yet they presently don't have a home on the radio in New York City,” said PD Chuck Singleton. “A second stream enables us to play deserving local acts in the same set as Bjork, M.I.A. or Arcade Fire, and at the same time, better serve New York's musically-adventurous listening audiences by introducing them to something different."

Like LA's KCRW, Philadelphia's WXPN and others, WFUV is proving that some of the most innovative programming and creative use of new delivery methods is coming from the non-commercial broadcast sector.

Stop Complaining About Radio And Do Something. FCC Opens Rare Window For Full Powered Licenses.

OK, all you music industry types who read this blog, stop complaining about the state of broadcast radio and do something about it. The FCC is opening a rare window of opportunity from Oct 12-19 to apply for new full power (100 to 100,000 watts) non-profit community stations.

The window itself will only last seven days and you can only file your application only during this seven-day window, so everything needs to be prepared in advance. If you don't apply during this window, it could be many years before another licensing window opens and there won't be much full power radio spectrum of value available after this issuing period.

These licenses will only be available to qualified community groups and nonprofits in certain geographical areas.  You can easily find out if there is frequency available near you and how to apply at GetRadio.org.

Video Of President Bush Proving His Understanding Of Performance Royalties

Part II - Music Festivals Thrive On Diversity. Why Can't Radio? An Interview With Radio Paradise's Bill Goldsmith.

Part II - Yesterday we asked why commercial radio doesn't follow the lead of today's top music festivals and program a more eclectic mix.  One of the few broadcasters who intelligently programs across the musical spectrum is Radio Paradise's Bill Goldsmith.  Here's a recent set of tunes on RP:

•     Elbow - My Very Best
•     Eddie From Ohio - Number Six Driver
•     Cheikh Lo Lo - Guiss Guiss
•     Van Morrison - Precious time

We asked Bill for his comments on the current homogenized state of radio:

"In the world of broadcast radio - even in the non-commercial realm - there's a tremendous pressure for quick success and short-term profit. That naturally leads broadcasters to favor packaged solutions or easy-to-emulate formulas, such as a short list of the least offensive soft-rock hits, or non-stop NPR news and commentary. A formula like what we use at Radio Paradise (playing an interesting cross-section of many different music genres, carefully blended so that it flows gracefully) doesn't lend itself to easy packaging and implementation."

"As for Internet stations, the easy route there is to throw up dozens, or hundreds, of channels devoted to a particular narrow genre of music. There's not a whole lot of time, effort, and creativity required to put a "pre-1980 classic rock" or "ambient electronica"...(continued)

Music Festivals Thrive On Diversity. So Why Can't Radio?

Today: Why?  Tomorrow: An interview With Radio Paradise's Bill Goldsmith

Part 1 of II: Look at the line-up of acts at the most successful festivals in the country like Coachella,  Bonnaroo, and The New Orleans Jazz & Heritage Festival and you'll find tremendous diversity.  Old and new, urban and rock, world and folk music all blend together to provide a rich experience that music fans are supporting with their wallets.

But most commercial over the air broadcasters are stuck in one musical rut or another.  Sadly, the practice seems to even extend to internet radio.

There are many reasons that music on the radio has become both more segmented and  within each genre more homogenized.  The race for ratings is paramount. Chasing a particular audience for advertisers can mean producing programming that targets them exclusively whether they are young white males or Hispanic women.

Our President On Performance Royalties

From the official White House transcript:

QUESTION: Mr. President, music is one of our largest exports the country has. Currently, every country in the world -- except China, Iran, North Korea, Rwanda and the United States -- pay a statutory royalty to the performing artists for radio and television air play. Would your administration consider changing our laws to align it with the rest of the world?

THE PRESIDENT: Help. (Laughter.) Maybe you've never had a President say this -- I have, like, no earthly idea what you're talking about. (Laughter and applause.) Sounds like we're keeping interesting company, you know? (Laughter.)

Look, I'll give you the old classic: contact my office, will you? (Laughter.) I really don't -- I'm totally out of my lane. I like listening to country music, if that helps. (Laughter.)

In A Victory For Indies Clear Channel Agrees To Pay Royalties For Use

After much criticism, Clear Channel is dropping it's demand that indie and new artists waive their rights to royalties in exchange for possible airplay on its chain of radio stations and exposure on its web sites.  The new artist program had only been put into place as part of a settlement with the FCC over payola allegations.

The new contract wording reads:

"...in the instance when Clear Channel makes the decision to use the Content for terrestrial broadcasting and, as a result, for simultaneous transmission through online streaming ("online streaming"), Clear Channel shall be subject to and pay for all applicable current and future statutory royalties as well as public performance royalties due for any such use of Content."

The contract goes on extend the same royalty payments to streaming, downloads and other uses.