Ok, one at a time...
It's not "reverse payola." It's paying for content. Terrestrial radio no longer has a monopoly on exposing music to the masses. There are plenty of other places to go, and they all pay the royalty. So should corporate radio.
Stations pay ASCAP and BMI fees to the songwriters, not the performers. Again, the other services pay those fees as well, plus the performance royalty.
It's true that radio isn't responsible for music piracy, but that doesn't matter. Sales are down, with piracy being only one of many reasons. People are using services (including radio) instead of buying physical copies of the music these days. If the other services have to pay, so should radio.
You say radio "promotes" music. When the glut of oldies, classic hits, classic rock, and mainstream AC stations play the same tired songs over and over ad nauseum, that's not promotion. That airplay isn't generating sales for those artists. Listeners consume those songs, radio makes money on the commercials that air, and the artists don't get any of it. I'm sorry, but that's unfair. In addition, when a new artist releases a hit song, it gets a few hundred thousand spins, and these days that's normally not enough to move 500,000 copies of their CD. In fact, most artists see their biggest sales total the first week of a album's release, way before radio really starts playing it, if at all. Bottom line, radio promotion doesn't work anymore. Pay up.
If the radio industry is "crippled" or in it's "death throes" it's their own damn fault. It was the big consolidators that overpaid for all those radio stations. They laid off all their talent, stopped doing research and stopped paying for marketing and promotion. That doesn't change the fact that the music industry has changed. The labels are having to adjust to a new business model, which is based on charging for usage instead of physical sales. Radio has to deal with the new realities, not pretend it's 2002 anymore.
Radio will not shut down or move to talk formats. It's a scare tactic. Each market can only support so many talk stations and there are only so many syndicated shows to go around. Running a live, local talk format is much more expensive than just paying the performance royalty. It just means terrestrial radio will make a little less money, but keep in mind that radio is still MAKING PLENTY OF MONEY! They just aren't making enough to cover their ridiculous debt service. That's their fault, not the labels.
I invite people to get the full story on the performance royalty at
http://musicfirstcoalition.org/
radiopromoguy said:
Sorry... but I respectfully disagree with you. It is, essentially, reverse payola. Stations already pay fees for the rights to broadcast music. Now they want them pay additional fees. It's ridiculous. It's not radio's fault that there is massive amounts of piracy happening. But, it is in effect, promotion. Radio airplay has a direct effect on music sales. And the performance tax, or fee, or whatever you want to call it, will pretty much cripple an industry that is already possibly in it's death throes. Most music stations will either have to flip to talk formats, or just shut the towers down altogether.
http://www.noperformancetax.org/