Newberry: We Tried, But Royalty System is Broken

6-6-2012

Commonwealth Broadcasting President and CEO Steve Newberry was in the thick of the action when the NAB was negotiating rates with performers a few years ago and he testified yesterday that, despite their best efforts, musicFIRST "declined our offer and never returned to the negotiating table." musicFIRST argues the NAB changed the offer at the last minute. Praising the Clear Channel Big Machine deal, Newberry said the way the rate system is set up is a "disincentive."

Newberry said, that since 2010, broadcasters have been ready to sit down and work to find common ground that properly recognizes the  promotional value of broadcaster airplay and the value of the music. "Yesterday, a negotiated royalty deal between Clear Channel Radio and Big Machine Records was announced. As I understand the details, Clear Channel has agreed to pay a percentage of advertising revenue for Big  Machine?s songs whether they are heard digitally or terrestrially. It is a free enterprise transaction between two willing parties. With no government involvement. From NAB?s perspective, nothing about this deal changes our strong opposition to a congressionally-mandated performance tax. What this announced deal really highlights is the major challenge we face as radio continues to grow online and into other new platforms. The current royalty structure for webcasting is broken. When initially set in 2007 and then built upon in 2009, the rates set by the Copyright Royalty Board were universally decried as being ridiculously high. So high that radio stations cannot afford to be successful online ? the more music listeners you attract, the less profitable it becomes."

Newberry was the NAB joint board chairman during some of the most heated discussions with the music industry. He testified that the system needs to change. "Believe me, radio broadcasters want to take advantage of all the possibilities the Internet presents, but these royalty rates create a financial disincentive to webcast, and solving this problem for broadcasters is essential. If we want music streaming to survive, we need to find a way to strike a better balance between royalty payments and platform growth, which at the end of the day, helps broadcasters and artists."

(6/7/2012 10:35:58 PM)
If these fees are so high, why aren't companies creating their own hits? Want a hot song that can't be found on Pandora? Make one and play it.
(6/7/2012 7:31:58 AM)
Two years ago I suggested a partnership with the music industry was a better approach than the war declred by the NAB. It is not too late as the Clear Channel approach illustrates. Listen to Greg Walden's words so that the next time Congress butts in the industry can say, " we have that worked out." Radio will get a much better deal.
(6/7/2012 7:25:01 AM)
Two years ago

Add a Comment | View All Comments Send This Story To A Friend

View the original article here

Steve Newberry Wins National Radio Award

Steve Newberry, president and chief executive officer of Commonwealth Broadcasting Corporation, will receive the National Radio Award during the Radio Show Luncheon held Friday, September 16. Newberry told Radio Ink last night "I am humbled and honored to be this year's recipient.  I know many great radio broadcasters who are so deserving of this recognition, and to be chosen at this time is hard for me to realize.  And, when I look at the list of previous recipients, even being considered in that company is an honor." Previous recipients include Charles Warfield, Ed Christian, Bruce Reese, Jerry Lee, David Kennedy, John Dille, Lowry Mays, Jeff Smulyan, Bill Stakelin, and Erica Farber, among others.

What does it take to get into a position to do so much for an industry and be considered for this award? Newberry says it starts with loving the business. "You have to absolutely love what you do, and when you find that you're in a place to serve your profession, step up.  Consider it an honor to serve and take the opportunity seriously.  And, be willing to consider issues from a point-of-view that might be different then what is your own. Radio is FILLED with great people who care about their communities, and I have been so fortunate to work among them."

And, finally, we picked Newberry's brain to see who he looks up to and admires the most, people that help him succeed. "First, I'll cheat just a bit and combine my mother and father as one unit.  My dad was a hardware store owner and elected official and my mom was a respected schoolteacher.  As children of the Great Depression, they had a perspective that was so influential in my life.  They instilled in my brother Jim and me a sense of service, a real work ethic and a respect for others.  I admire them greatly and I am so thankful for the foundation they provided us.

The second would be a great friend of mine in my hometown by the name of Freddie Travis.  Freddie is a former Marine officer and elected official, a long-time client and a business partner who is now in his mid 70's.  He is known for his straightforward, no-bull approach, and he has been a counselor and great friend to me. I admire his very clear sense of leadership and integrity.

The third is not in radio, but is in television. Jack Sander was my predecessor as Joint Board Chair.  Anyone who knows Jack understands why I admire him.  He is the perfect balance of being a tough businessman and a true gentleman.  He can master complex issues, lead diverse groups and make things happen.  Yet, he never fails to call my 12 year-old son Walker by name and take a sincere interest in how Walker?s baseball teams are doing.  Jack defines the kind of leader and person I admire.

The Radio luncheon will take place during the 2011 Radio Show, jointly produced by the National Association of Broadcasters #NAB# and Radio Advertising Bureau #RAB#, September 14 - 16 in Chicago.

Add a Comment Send This Story To A Friend

View the original article here