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
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