No, Getting Your Music Played On The Radio Is Nothing Like Slavery

from the want-to-try-that-again? dept

Every couple of years, like clockwork, the RIAA gets its friends in Congress to introduce some form of a performance rights bill, that would require radio stations to pay compulsory licenses to performers of the music they play on the radio. Every year it goes nowhere because the radio owners' big lobbying group, the NAB, is about equal in power to the RIAA. So the two sides fight it out, donate a lot of money to Congress, and nothing changes. There's generally a lot of FUD thrown up in the process, along with some crap about "fairness" when that's not what they're really pushing for at all. It's all about more revenue for the record labels and that's it. If you're unaware, playing music on the radio already requires payments to songwriters/publishers, but not to performers. The reason being that being on the radio acts as promotion, allowing the musicians to make it up elsewhere. We know that this happens because of the widespread practice of payola, in which the labels pay the radio stations to play their music. If it wasn't worth it to get on the radio, the labels wouldn't regularly get involved in payola scandals. And yet, they do, because radio play (even today) remains great advertising for music.

We thought things had reached a new low four years ago when Rep. John Conyers sponsored one of these bills and insisted that radio stations playing musicians' music was the equivalent of slavery. Apparently, the RIAA liked that line so much it fed it to a different Congressional Rep. this year. RIAA darlings Jerry Nadler, Marsha Blackburn and Ted Deutch have joined Conyers in releasing the latest version of a performance rights act, this time called the "Fair Play, Fair Pay Act of 2015" and the RIAA's spin doctors somehow decided that having Rep. Nadler use the slavery line was a good idea:

Previously, radio complained about the economy, asserting that they simply couldn’t afford to pay performers. But as far as the radio industry is concerned, “it's never the right time,” Nadler said. “What other industry says, ' We can’t afford to pay our workers; We want them to work for free,'” he cracked. “We got rid of that argument here in the U.S. in 1865," referencing the abolition of slavery legislated by the 13th Amendment.

I'm sorry, but in no possible way is promoting someone's music on the radio the equivalent of slavery. To say so is not just insulting and offensive, but it's ridiculous. You can argue about the appropriateness of royalties, compulsory rates or anything else -- but to argue that getting played on the radio without direct compensation (despite all the indirect compensation) to slavery is just flat out ridiculous. Nadler doesn't get paid each time he goes on TV to talk about whatever bill he's supporting, does he? Is that slavery? No, it's promotional, just like music being played on the radio.

Just the fact that Nadler has to resort to this silly and tired argument again, despite it flopping five years ago, should tell you all you need to know about this weak attempt by the RIAA to squeeze out more money without doing anything different.

Filed Under: congress, fair play fair pay act, jerry nadler, john conyers, marsha blackburn, performance rights, performance rights act, radio play, slavery, ted deutch
Companies: musicfirst, riaa, soundexchange

Rep. Conyers Compares Lack Of A Performance Right Tax To Slavery

from the sing-along-now dept

We thought it was crazy enough when an RIAA-organized lobbying group called radio "a form of piracy" because it didn't pay musicians to promote their songs. But it appears that Rep. John Conyers, one of the biggest backers of forcing radio stations to pay an additional tax to help promote music, has taken it a step further. Via Copycense we learn that at an event put on by recording industry lobbyists, Conyers decided to compare the lack of a performance right mandatory fee for radio stations to slavery and indentured servitude. Seriously:

"In 1865, slavery was abolished by the 13th Amendment. No more free labor," Conyers said. "It abolished at the same time involuntary servitude. What does that have to do with what we're here for today? Well, when you tell somebody that you're benefiting from their work product but there's no avenue for compensation, it kind of harkens back to that great problem."

What an incredibly shameful thing to say. Beyond making the absolutely bizarre and ridiculous connection between the failure of one giant industry to force another big industry to hand over a chunk of cash (most of which never will be seen by any musicians), it ignores basic economics. Historically, the money has flowed the other way. For decades, record labels and promoters have used forms of payola to pay radio stations to play certain musicians. Why? Because they clearly knew that they got a ton of value out of those songs being promoted on the air. Songs on the radio are advertisements. What kind of industry gets Congress to force broadcasters to pay to run their advertisements -- and then has the gall to have an elected official claim that not paying to play these ads are the equivalent of indentured servitude?

Of course, Conyers knows all about Payola. Back in 2002, he was the one who called for payola hearings on Capitol Hill. So how is it that he suddenly thinks that money not going the other way is somehow "no avenue for compensation"? He's being blatantly intellectually dishonest here. Is it worth mentioning that in the last election the two largest contributors to his campaign were lawyers and the Music/Movie/TV industry?

The performance right tax is not about "indentured servitude." It's not even about people benefiting from a product where "there's no avenue for compensation." Quite the opposite. Getting your music on the radio is a huge challenge for most artists, and if you can get your music heard that way, it's still a huge boost to a musician's career. Does Conyers think that when there's a popular commercial on TV that people want to see that the makers of that commercial are "slaves" because they're not getting paid every time the commercial is played? It's yet another example of corrupt politicians in DC pushing legislation that helps one particular industry, and making up completely ridiculous arguments to support their position. This isn't about slavery or indentured servitude. It's about Congress granting a huge mandatory windfall to the record labels (at the expense of radio stations) because those labels are unwilling to actually do something to properly capitalize on free promotion from the radio stations.

Filed Under: copyright, john conyers, payola, performance rights, performance rights act, performance tax, radio, slavery
Companies: riaa

Senate Judiciary Committee Approves RIAA Bailout Radio Tax

from the and-so-it-goes dept

Because the federal government apparently hasn't helped the RIAA enough in the past century -- despite repeatedly changing copyright laws to favor the industry again and again and again (and again) -- the Senate Judiciary Committee has approved the Performance Rights Act, which effectively serves to tax radio stations for promoting music. It's quite obvious to anyone who actually understands radio economics that this makes no sense. After all, the history of radio has always been about payola -- having the labels pay the radio stations to play certain works. That's because the record labels know quite well that airtime leads to more money in terms of promoting an artist and building a business model around music, concert and merchandise sales. To the labels, airplay has always been the equivalent of advertising. That's why they pay for it.

But now they want the radio stations to pay them to advertise the labels' music? Isn't that getting the equation backwards?

This is nothing more than a federal bailout of the RIAA, who still refuses to embrace new business models. Instead, they have to squeeze others and get the government to force them to hand over money. A real business model doesn't involve changing the law. It involves giving others a reason to buy. Apparently, that's too difficult for the RIAA.

As for the claims that a performance license will somehow help musicians, that's bogus as well. First, ask the RIAA's SoundExchange about all the money it keeps for itself and about all the musicians it "can't find." Besides, all this will do is harm up-and-coming musicians. Because radio stations will now need to pay more for playing music, they'll play less music, and if they're playing less music, they'll focus just on the big name acts. Smaller up-and-coming artists should be furious with the RIAA for giving radio stations less incentive to play their works. Remember, this is the opposite of payola. While payola got new records on the air, this will make sure fewer get on the air. But it will sure put a bunch more money in the pockets of the major record labels. So there's that.

Filed Under: bailout, performance rights act, radio, webcasters
Companies: riaa, soundexchange

Pandora Continues To Push Users To Vote For Shameful Radio Performance Tax

from the can't-compete? dept

We mentioned back in July how Pandora was urging its users to support the Performance Rights Act, which is effectively a government bailout for the RIAA by taxing already struggling radio stations for the right to help promote the RIAA's music. It's a travesty. The only reason Pandora supports it is because Pandora was pressured into its own ridiculous webcasting rates and wants to help bring down radio too. While I like Pandora as a service, I think it's shameful that it's now using the political process to burden competitors with a government created tax, that goes straight to the RIAA.

Apparently, Pandora has once again ramped up this effort to have the government tax its competitors. A whole bunch of you have been forwarding these ridiculous emails from Pandora that urge people to contact their elected officials in support of the RIAA Bailout bill. Most of those submitting those emails to us have said that you'll be doing the exact opposite, and are offended that Pandora is pushing you to support such a thing.

Yes, Pandora, it sucks that you got stuck with ridiculous webcasting rates that will make it difficult to remain profitable, but that's no excuse for trying to get the government to dump an unfair tax on your competitors.

Filed Under: bailout, performance rights act, radio, webcasters
Companies: pandora, riaa, soundexchange

Why Is The FCC Even Giving The Time Of Day To RIAA's Bogus Radio Witchhunt?

from the waste-of-resources dept

Earlier this year, MusicFirst, a lobbying group that is run by the RIAA and pushing for a special tax on radio stations for daring to promote songs, came out with its latest in a long list of bizarre claims, demanding that the FCC investigate the fact that radio stations were supposedly boycotting musicians who supported the Performance Royalty tax. There were numerous problems with this claim. First, we thought it was rather hypocritical of MusicFirst to demand that radio stations play these artists, when it was the very same MusicFirst that was also claiming that radio was "a kind of piracy" for playing the music of these very same artists without paying a performance tax.

So, apparently if a radio station does play these artists, it's piracy. If it doesn't play these artists, it requires an FCC investigation.

Beyond that, MusicFirst failed to note that many of the artists topping the charts (including the Black Eyed Peas, who topped the charts at the time) were some of the most outspoken artists in favor of this tax. If there was some big conspiracy to not play these artists on the radio, someone forgot to tell... well... pretty much every radio station around.

That highlighted the third problem: MusicFirst didn't happen to point to any radio station that actually did this. The only one that could be dug up was a small high school radio station that had publicly boycotted artists supporting such a tax (which would have shut down the radio station), but only did so for one month and that month happened two years ago, and was a clearly supported expression of free speech.

And that brings up the final point. The recording industry has no right to demand that radio stations play certain artists. A radio station is free to play whatever artists they wish and run whatever commercial they wish. This is a pure free speech issue, and it's quite troubling that the recording industry is targeting radio stations when they have no right over this.

Based on all of this, you would hope that the FCC would simply laugh off the petition... but tragically, it's opened up a consultation on the matter and is asking for public input (found via Michael Scott). The article linked here goes through all of the First Amendment questions raised by this, and notes (thankfully) that the FCC seems to recognize those issues as well. But, if that's the case, why even bother holding this investigation in the first place?

Filed Under: bailout, high school radio, performance rights act, piracy, radio
Companies: fcc, musicfirst, riaa, soundexchange

Pandora: If We're Getting Taxed So Heavily By SoundExchange, Radio Should Be Too

from the strange-bedfellows dept

Well, this is rather disappointing. Just days after caving in and agreeing to new webcaster rates that will harm pretty much everyone, Pandora has gotten right into bed with the RIAA/SoundExchange in supporting the Performance Right Act (the RIAA Bailout Act) to extend a similar unnecessary tax on radio. Pandora's reasoning is no surprise: basically it's saying that if it has to pay such a silly tax to help promote musicians, it's unfair that radio stations get away without paying something similar. But, still, it's disappointing. Rather than looking at adding value to the overall market, Pandora has basically decided that it's "enemy's enemy is a friend" and is supporting such a law simply because it will harm radio stations. This makes me think significantly less of Pandora.

Filed Under: bailout, performance rights act, radio, webcasters
Companies: pandora, soundexchange

Recording Industry: Radio Is Piracy, But Not Playing Our Music Is A Federal Offense

from the logic-much? dept

It appears that the big record labels and their lobbyists aren't content with just suing and shaking down students across the country -- now they want to threaten them for taking a political stand as well. Earlier this week, musicFIRST, the big time lobbying group put together by the RIAA to push for the highly questionable Performance Rights tax on radio stations, did a neat little publicity stunt where it asked the FCC to investigate radio stations that apparently were "boycotting" musicians who supported the Performance Rights tax, claiming that it was an abuse of the airwaves. Remember, this is the same group that just recently called radio "a kind of piracy."

So, wait, which is it? If it's a kind of piracy to play songs on the radio, shouldn't musicFIRST and the RIAA be thrilled that radio stations aren't playing their music? Or do they recognize the free promotional benefits radio provides for artists? They can't have it both ways, can they? First they're upset that the music is being "pirated" and now they're upset that it's not being "pirated"? Please explain!

Now, as for those nasty nasty radio stations "boycotting" certain artists, well who are they? Turns out one of the main culprits is a tiny 100-watt high school radio station who has explained, in great detail the reasons behind their political stance. They are making a political choice by purposely boycotting musicians who support the view that playing their songs on the radio is "a kind of piracy." You would think that would make musicFIRST, the RIAA and those musicians happy. But, more to the point, that music "boycott" was a temporary thing, and lasted for one month, from mid-June 2007 until mid-July of that same year. Yes. It lasted for one month, to make a political statement, and it happened two years ago. And suddenly the RIAA/musicFIRST wants an FCC investigation? Of a bunch of high schoolers making a political statement against a tax that would harm their educational radio station by not "pirating" materials that the lobbyists claim are pirated?

Filed Under: bailout, high school radio, performance rights act, piracy, radio

Bailing Out The RIAA?

from the there-we-go... dept

At the Tech Policy Summit yesterday, David Carson, the General Counsel of the US Copyright Office spent a bit of time at the beginning of his talk explaining why the Performance Rights Act made sense. This is the bill that would make radio stations pay musicians (rather than just songwriters as it is now) for every song they play on the radio. The recording industry insists that it's somehow unfair that radio stations have been promoting their music for free, and Carson seems to believe their explanation 100% (which is, unfortunately, quite typical of the Copyright Office). He argued, unconvincingly, that while radio used to promote artists (the reason that stations don't need to pay musicians), it no longer does so. That makes no sense. While there are alternatives out there for promoting artists, and radio may not have the impact it once had, that hardly means that the stations aren't promoting the music.

And, of course, the most damning argument against the recording industry's demand for money here is the fact that, for decades, the industry has (illegally) had the money go in the other direction. The system of payola has shown, quite clearly, how much the recording industry values airtime, in that it's willing to pay radio stations to play its music.

So, can anyone explain why it's illegal for record labels to pay radio stations to play music, but it's okay for Congress to force radio stations to pay the record labels for playing their music? It defies common sense.

Yet, with a nice push from the Copyright Office, the bill is moving forward, and will face a full House vote. During the Committee debate over the bill, Rep. Daniel Lungren made a perfectly reasonable suggestion: why not wait until the GAO had a chance to do an economic analysis of how the bill would impact radio stations. Considering that the bill is effectively a tax on those radio stations, this seems like a perfectly reasonable idea... but it resulted in Rep. Howard Berman (who represents Hollywood, always) accusing Lungren of trying to kill the bill. Isn't it great when simply waiting to find out what kind of impact the bill might have gets you accused of trying to kill it. Apparently in Congress, it's all about shooting first and asking questions later.

That said, Peter Kafka, over at AllThingsD, has made the best point: most people don't care about this bill because they don't realize that it's really a bill to bail out the RIAA by creating a radio station tax that goes straight into the recording industry's bank accounts. So, rather than call it the Performance Rights Act, it should more accurately be called the Britney Bailout Bill.

Filed Under: bailout, performance rights act, radio