Music's Latest Royalty Push

[TheBigA]

There was a time when the music industry depended on radio. That time ended 40 years ago. For the past 25 years, the music industry has been on a tireless campaign to force the digital music royalty on broadcast radio. They want the same rate, the same system, and no negotiations across the board. They see no difference between broadcasting and digital. They're tired of program directors making music decisions, telling them their music is no good. So they keep going to congress, demanding their royalty. They will be there testifying today:

AMFA Supporters Trying Last-Minute Royalty Hike Strategy In DC - Radio Ink

A last-minute push for the American Music Fairness Act brings Gene Simmons and SoundExchange to Capitol Hill to stump for more fees for radio.

radioink.com

Gene Simmons of Kiss will be there. He wrote this opinion piece for the Washington Post:

https://www.washingtonpost.com/opinions/2025/12/04/gene-simmons-kiss-radio-fairness-act/

The problem with this is they only see their square foot of the situation. They don't recognize that radio has government obligations that digital doesn't have. They don't care that radio has ownership regulations that digital doesn't have. They don't care that radio revenue is falling mainly because of digital. Fairness means BOTH sides benefit, but they only care about their side. They want their money, they want it their way, and they want it now.

They're right about one thing: The system is broken. It's been broken for 30 years. But if you're going to demand money for airplay, there needs to be a way to pay for it. Congress has the power to fix both sides of the equation. They can give music their royalty, and give radio no regulations. Allow radio to charge consumers for what they do. Put the airwaves on the same level as the internet. Change the whole system. Because truthfully, nobody is happy with status quo. Music isn't happy, broadcasters aren't happy, and the listeners aren't happy. Just giving the music industry what it wants doesn't fix the problem. That will take real work.

 

[ted chittenden]

There was a time when the music industry depended on radio. That time ended 40 years ago. For the past 25 years, the music industry has been on a tireless campaign to force the digital music royalty on broadcast radio. They want the same rate, the same system, and no negotiations across the board. They see no difference between broadcasting and digital. They're tired of program directors making music decisions, telling them their music is no good. So they keep going to congress, demanding their royalty. They will be there testifying today:

AMFA Supporters Trying Last-Minute Royalty Hike Strategy In DC - Radio Ink

A last-minute push for the American Music Fairness Act brings Gene Simmons and SoundExchange to Capitol Hill to stump for more fees for radio.

radioink.com

Gene Simmons of Kiss will be there. He wrote this opinion piece for the Washington Post:

https://www.washingtonpost.com/opinions/2025/12/04/gene-simmons-kiss-radio-fairness-act/

The problem with this is they only see their square foot of the situation. They don't recognize that radio has government obligations that digital doesn't have. They don't care that radio has ownership regulations that digital doesn't have. They don't care that radio revenue is falling mainly because of digital. Fairness means BOTH sides benefit, but they only care about their side. They want their money, they want it their way, and they want it now.

They're right about one thing: The system is broken. It's been broken for 30 years. But if you're going to demand money for airplay, there needs to be a way to pay for it. Congress has the power to fix both sides of the equation. They can give music their royalty, and give radio no regulations. Allow radio to charge consumers for what they do. Put the airwaves on the same level as the internet. Change the whole system. Because truthfully, nobody is happy with status quo. Music isn't happy, broadcasters aren't happy, and the listeners aren't happy. Just giving the music industry what it wants doesn't fix the problem. That will take real work.

The Internet has turned out to be a big problem for artists. Basically, even though people are paying for music now, what the artists get is quite a bit lower than what they get when people purchase CDs, cassettes, and records. So everything they're doing now is to try to return to the same amount of money they were receiving before the Internet came along. And part of that means forcing over-the-air broadcasters to pay music royalties like webcasters do.

You noted that this may be the last opportunity in the current Congress to do that. From some news sources (Daily Kos, quoting reports in Politico), there are a number of GOP House members who are looking at following Marjorie Taylor Green out the door after January of next year but before the 2026 elections. If (assuming my math is correct) just five Republican members follow Ms. Green in this fashion, the House would turn over to rule by the other Party, in which case practically nothing, including a Federal budget for next year and the proposed legislation, will be voted on.

 

[TheBigA]

The Internet has turned out to be a big problem for artists.

It depends. The ones I know have found other revenue streams to make up for the loss. Same with the record labels.

You noted that this may be the last opportunity in the current Congress to do that.

The music industry is singularly focused on this. They will continue to pound until they win.

 

[TheBigA]

One story mentioned in the article I linked was the recent royalty agreement between broadcasters and BMI:

BMI, ASCAP Secure Big Radio Rate Hikes With RMLC Settlements - Radio Ink

BMI and the Radio Music License Committee have reached a settlement that delivers BMI’s largest-ever rate increase for radio licensing fees, retroactive to January 1, 2022.

radioink.com

Songwriters receive 100% of the money radio stations pay for music. Broadcasters pay songwriters more for their music than digital. About 20 years ago, the proposal was to simply split the radio money pot among writers, artists, and labels. But the songwriters refused to take a pay cut and share their money with anyone else. That's when the idea came up to create a new royalty.

But we should be clear that broadcasters pay the music industry for their music. We don't get it for free. There is no "loophole." We also pay artists and labels full rate for any streaming that is done.

 

[radiofan2023]

The Internet has turned out to be a big problem for artists. Basically, even though people are paying for music now, what the artists get is quite a bit lower than what they get when people purchase CDs, cassettes, and records. So everything they're doing now is to try to return to the same amount of money they were receiving before the Internet came along. And part of that means forcing over-the-air broadcasters to pay music royalties like webcasters do.

They make a lot more from touring and merchandise sales on tour, like Taylor Swift’s Eras Tour, etc.

 

[Theater of My Mind]

Gene Simmons of Kiss will be there. He wrote this opinion piece for the Washington Post:

It's paywalled.

 

[TheBigA]

It's paywalled.

Get used to it. Gene wants to paywall music.

 

[secondchoice]

I never thought I would be saying this: but AI can help. Each station could let AI rerecord every song they play very close to the original then the station submits it as a record. They would be entitled to the "artists" royalty. Supposedly two voices can "sound alike" but be different when examined in court with the right kind of equipment. The writers still get payed.

I don't feel sorry for the recording "artists" who were stupid enough to sign a less than one cent per 45 and less than a quarter per album record deal and got nothing. In reality they were lucky if they received any serious money from the record labels when a lot of them had fine print in their contract where they were charged for "expenses".

Fame can leave just as fast as it comes. If you toured, you should have made some serious money. Why the folks never saved money is poor management. My ex brother in law did some recording trumpet work for an Hispanic act when their trumpeter was in jail. He took the money right then and waived the royalties. He invested his royalties in beer.

 

[Larry]

It's paywalled.

Gift article

https://wapo.st/4atYIYQ

 

[K.M. Richards]

Of course, we all know what the artists don't.

If this comes to pass, it will do more to end music formats on terrestrial radio than all of the streaming services combined.

Which will put the artists right back where they started, except that they will never understand why radio stopped playing their music.

Be careful what you wish for ... you might just get it.

 

[TheBigA]

they will never understand why radio stopped playing their music.

The artists may not know it. The artists have multiple revenue streams. But the songwriters will. The songwriters receive 100% of the music royalty from radio. It's more than they receive from streaming. They will feel it if it goes away. You didn't hear from them in congress today. They're not the ones out there pushing for this royalty. Because they know it will hurt them if radio stops playing music, or even if fewer stations play music.

 

[davideduardo]

The artists may not know it. The artists have multiple revenue streams. But the songwriters will. The songwriters receive 100% of the music royalty from radio. It's more than they receive from streaming. They will feel it if it goes away. You didn't hear from them in congress today. They're not the ones out there pushing for this royalty. Because they know it will hurt them if radio stops playing music, or even if fewer stations play music.

Actually, the songwriters share some of the revenue with the publisher of their songs. Thus, ASCAP's "P" stands for "Publisher" along with the Authors and Composers we assume get the benefits.

One issue I see here is that there are many, many famous artists. We know them by name and know of many within not just the kinds of music we like, but from TV and press coverage of their lives.

Authors and composers can rightfully be considered to be as equally talented. But they are not as well known, and, more important, they get relatively tiny payments when a big artist performs their songs in concerts, whether live or broadcast. They get most of their income from the sale or streaming of songs, the airplay on radio and TV and the playing of their songs in public places, such as stores and bars and restaurants.

My point in bringing this up is that radio has recognized composer rights, but has also realized that artists receive a greater benefit from airplay that includes enhanced interest in attending concerts as well as airplay and streams. There is no greater income to be had by composers, as they don't have concerts and appearances unless they are also the performer.

And if Garth Brooks makes a statement to a government committee, it gets big press. But if Mike Stoller had made an appearance in a committee, I'd be amazed if he would have gotten any press at all. Yet, at his passing he was worth over $200 million!

So the power of the voice of a composer who is not also a performer is vastly less insofar as public opinion is concerned. And public opinion drives politicians.

 

[TheBigA]

Meanwhile, the Copyright Royalty Board has approved a 2.9% rate increase for some non-commercial stations:

CRB Approves 2.9% Music Royalty Hike For Some Noncomm Stations In 2026.

Noncommercial radio stations will see a 2.9% increase in SESAC and GMR music royalty fees in 2026, as the Copyright Royalty Board approves a higher cost-of-living adjustment tied to inflation.

www.insideradio.com

This is for stations who are not NPR affiliates. NPR has its own licensing agreements.

 

[TheBigA]

Here is some reporting on last week's senate hearing with quotes.

Performance Royalty Fight Spills Into AM Mandate Debate.

Supporters of a new performance royalty are trying to tie the legislation to a proposal requiring AM radio in vehicle dashboards, a move broadcasters say threatens the fast-moving AM bill.

www.insideradio.com

They're trying to tie their royalty to the AM in every car bill.

A lot of the testimony was about the artists, but they would only get 49% of the money. 50% would go to foreign-owned record labels such as Sony and Universal. These are the companies that are funding this push.

 

[K.M. Richards]

They're trying to tie their royalty to the AM in every car bill.

A lot of the testimony was about the artists, but they would only get 49% of the money. 50% would go to foreign-owned record labels such as Sony and Universal. These are the companies that are funding this push.

Given how difficult it was to get support for the original bill, I suspect this move will fail, and might take down the original in the process.

The tactical error here is in advocating a split in which the new royalties would not go entirely to the artists. That was the only potential leverage they had in terms of public support.

 

[TheBigA]

The tactical error here is in advocating a split in which the new royalties would not go entirely to the artists. That was the only potential leverage they had in terms of public support.

It's always been the way it was set up. They want it to be an extension of the digital royalty, that's set up with the same split. It was laid out in the DMCA of 1998. The royalty would be officiated by SoundExchange, which is owned by the RIAA (the record labels).

But you're right that the organizers put all the attention on the artists, because if the truth was known, it wouldn't have any support.

 

[TheBigA]

This report makes it sound like the bill got some traction during the hearing

Radio Demonized In One-Sided Music Fairness Debate In DC - Radio Ink

A Senate hearing on the American Music Fairness Act turned combative as lawmakers cut off NAB testimony and Gene Simmons delivered a chaotic defense of new radio royalties.

radioink.com

Broadcasters Push Back As Senate Revives Radio Royalty Fight.

A rare Senate hearing on radio performance royalties Tuesday reignited a fight largely unchanged for decades. Supporters said artists deserve payment, while broadcasters warned even “small” fees could crush stations.

www.insideradio.com

 

[Don CT]

If a bought a CD once, what was the artist royalty. If I stream an album once, what is the royalty. That seems to be the equivalency. They never knew how many times I listened to the CD so they only get one fee.

 

[CTListener]

This report makes it sound like the bill got some traction during the hearing

Radio Demonized In One-Sided Music Fairness Debate In DC - Radio Ink

A Senate hearing on the American Music Fairness Act turned combative as lawmakers cut off NAB testimony and Gene Simmons delivered a chaotic defense of new radio royalties.

radioink.com

Broadcasters Push Back As Senate Revives Radio Royalty Fight.

A rare Senate hearing on radio performance royalties Tuesday reignited a fight largely unchanged for decades. Supporters said artists deserve payment, while broadcasters warned even “small” fees could crush stations.

www.insideradio.com

So suppose the unthinkable happens and this bill makes it through both houses and the president signs it. Does radio immediately stop playing any music that isn't public domain -- and jettison nearly all of its listeners in the process -- or just suck it up, keep playing the hits, and find a way to absorb the extra royalties by either going jockless or using AI jocks?

 

[TheBigA]

So suppose the unthinkable happens and this bill makes it through both houses and the president signs it. Does radio immediately stop playing any music that isn't public domain -- and jettison nearly all of its listeners in the process -- or just suck it up, keep playing the hits, and find a way to absorb the extra royalties by either going jockless or using AI jocks?

Radio is not one thing, so my prediction is the Top 10 radio companies will continue to play music. A lot of smaller stations won't. That's the reaction the NAB got 15 years ago. They had agreements from the Top 10 companies but not the smaller ones. iHeart took the lead in 2008, offering to pay a voluntary royalty. But some small stations actually flipped formats from music to talk back then.