SENATE PANEL SAYS RADIO SHOULD PAY FOR MUSIC

Folks, I heard this news earlier this morning when I was listening to
the Bloomburg Urban Business Report on my local talk station!
Check it out and tell me what you think!

Link: http://www.eurweb.com/story/eur56815.cfm

SENATE PANEL SAYS RADIO SHOULD PAY FOR MUSIC: New measure would force stations to pay a royalty fee for playing songs.



October 19, 2009



*New legislation approved by the Senate Judiciary Committee would
require radio station owners to pay new fees to play music on the air.


Despite opposition from
broadcasters, the measure was approved in a voice vote after such music
labels as Warner Music Group Corp.,Vivendi SA, and Sony Music
Entertainment say their artists deserve to be compensated for the value
their songs bring to radio stations, Bloomberg reports.


The measure would establish
a royalty to be split between recording artists and labels. Satellite
and Internet radio already pay such fees. Similar legislation passed
the House Judiciary Committee in May.


Before approving the bill,
the committee softened its financial impact on local radio stations.
Broadcasters making less than $50,000 can pay a flat annual fee of
$100, and stations making less than $1.25 million can pay a flat fee,
said Vermont Senator Patrick Leahy, a Democrat who heads the Judiciary
Committee.


Music labels and radio
stations are struggling with declining revenue amid the economic slump
as listeners are relying more on the Internet and mp3 players for their
music sources. Texas Senator John Cornyn, a Republican, said new fees under the legislation may amount to $1 billion annually.


“I worry that the bill could put small- and mid-sized broadcasters out of business,” Cornyn said.


Broadcast companies
including CBS, Clear Channel Communications Inc., Cumulus Media Inc.
and Citadel Broadcasting Corp. say radio play promotes music and should
remain free. The National Association of Broadcasters, a Washington-
based trade group that represents commercial radio, said in an e-mailed
news release today that 251 House lawmakers and 26 U.S. Senators oppose
the new fees.


“A performance tax is bad
for free, local radio,” said Dennis Wharton, the trade group’s
executive vice president, according to the news release. “It’s bad for
radio’s 235 million weekly listeners. And it’s bad for the legions of
new and legacy artists whose careers were launched and nurtured by free
radio airplay.”


The fees face opposition in
the House and Senate, said Alabama Senator Jeff Sessions, the top
Republican on the Judiciary Committee.


“I don’t think we’ve reached a consensus yet,” Sessions said.


“I think it’s going to be some time before this bill comes to the floor,” said Senator Arlen Specter, a Pennsylvania Democrat.

Interesting Thank you

Human_nature wrote:Interesting Thank you

Sure! You're welcome.