Recording Industry Declares Radio “Piracy”

The recording industry, in its all-knowing wisdom, has decided to take another stab at gaining revenue from radio broadcasters. Last Monday, the National Association of Broadcasters literally received a can of herring and a dictionary (along with some provocatively named music tracks) to help the recording industry’s point get across. And it’s simple. It’s easy to understand. They want more money.

A long standing agreement between the two parties came to the mutual settlement that radio broadcasters are free from paying performance royalties if the record label’s material is "promoted." And to an extent, that’s exactly what radio broadcasters do – promote music. However, the record label’s new rational claims that terrestrial radio is "a form of piracy" because the industry doesn’t agree with the new terms.

Now, personally, I’m split between the issue. On one hand, the relationship has remained constant throughout the years, and broadcasters are already feeling the pressure from new markets such as internet radio and music downloading, and the cost of supporting their arguably dwindling industry. Yet, on the other hand, I think there should be identical fees payed by terrestrial, internet, and any other form of broadcasting or sharing media. But changing the terms just because the labels want more money should not be an option.

The article adds that there are proposals on the issue for radio broadcasters to pay variable or a flat fee, depending on the bill and size of the station. A bill could be approved as early as this Thursday.

On Monday, the recording industry sent the National Association of Broadcasters — the trade group representing the $16 billion a year AM-FM broadcasting business — a can of herring to underscore that it believes its arguments against paying royalties are a red herring. The NAB says its members should not pay royalties because AM-FM radio "promotes" the music industry.