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Music performance fees ?- Small business exemption? , good for local radio.

G

Groove1670

Guest
From Taylor On Radio:

David Oxenford of Davis Wright Tremaine says quote:

In fact, there is actually a bigger exception for broadcast radio and TV, as owners of retailers with less than 2,000 square feet or ‘food service or drinking establishments’ of less than 3,750 square feet can avoid the public performance fees if they just play radio or TV, don’t charge admission, and meet certain requirements as to the number of speakers.”

Does this mean that establishments that follow the above are exempt from all fees?
 
Yes, but there is a considerable grey area here. Essentially, if you have less than four speakers, if the radio is on very low, or is just for the cook in the back, you can get away with it.

In the past, BMI or ASCAP would harass the small businesses, threatening them with suit. Immediately followed by the Muzak guy offering to make all their troubles go away. With Muzak in bankruptcy, there is less pressure on the typical restaurant running XM on several speakers in the dining area.
 
The thing I notice about XM is the branding. My local Olive Garden runs their Sinatra station, and every now and then an announcer comes on to tell us what we're hearing. Not so with the Pandora channels. So while they'll benefit from the monthly fee, they won't be able to promote their brand.
 
The world would be better served if someone were to start an Occupy SESAC movement.
 
Radio would be a better place if one big company would embrace a nationwide, pay-for-play advertising platform for new music. Just think, no royalties for advertised music, every minute sold not just 30%, lower entry costs for 12,000 independent labels, no commercial interruptions unless sold at a very high primium to interrupt the music.
 
H82BL8 said:
Radio would be a better place if one big company would embrace a nationwide, pay-for-play advertising platform for new music.

Funny...Clear Channel tried that very thing a few years ago, using their on-line platform to help market new music to their OTA listeners, and the music industry objected, so CC shut it down.

The music industry wants exposure, and they want to get paid for it. And you can't have both. I remember sitting in a room with publishers who felt they should get paid for the :30 samples that you hear on Amazon before you buy. They simply don't understand how their own business works. And they wonder why music sales are in the dumper.
 
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