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April 27, 2007 06:20 PM UTC
2 Comments
All talk, dump the bumper music unless it’s a local garage band, I guess.
A lot of internet radio is broadcast radio put on the internet. The stations are already paying ASCAP and licensing fees for their AM or FM broadcasts. And I don’t think such fees depend on the listener count.
Am I way off base? (Referring to this topic only!)
You are correct that an all-talk radio station would not be subject to the new CRB royalty rates. All stations – Terrestrial (traditional FM/AM), Internet & Satellite – pay to ASCAP, SESAC, BMI etc. – those royalties go to the songwriters, not performers. Historically, there have not been royalties paid to the performer or master/mechanical rights owners as the promotion of radio play was viewed by most as “fair trade” to promote the sales of CDs, concert tickets, merchandise etc., while the ASCAP et al fees were paid to ensure that the original songwriter (publishing rights) were compensated.
Under the current system, AM/FM pays no royalties to the copyright owner/musician, Satellite rates are about 7.5% of revenues and internet radio stations (internet only and FM/AM rebrodcasts) pay these CRB established rates to an entity called SoundExchange which is responsible for paying them out to labels and musicians. The rates established are a “per listener, per song” rate so if a station plays one song to 500 listeners, those rates add up to ~$75k for 2006 and more than double by 2010.
You are also correct that an internet station could play only “garage band” music, but the way the CRB was set up, royalties are due and payable unless the station has specific authorization from the musician/owner to play it for promotional purposes. Some stations will undoubtedly endeavor to focus on doing this. For other stations (i.e. Soma.FM, Radio Paradise etc) who offer niche-programming or simply offer a far more expanded playlist than the music played on most AM/FM stations, it will not be practical for them to try to get waivers/promotional use agreements with thousands of artists. The whole situation has created a battle even within the halls of many record labels where the marketing people want any station that has listeners (FM or internet) to play their music, but legal & finance see the internet as a place to make up for the lost revenues from declining CD sales. It is certainly ironic that all of this is coming into effect at the same time as the major labels have settled multi-million dollar settlements for violating Payola laws and paying to have their music on FM radio.