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Music's Latest Royalty Push

find a way to absorb the extra royalties by either going jockless or using AI jocks?

I'm pretty sure the programming people at the big companies have been aware that at some point this royalty is going to happen. It's one of the many things that we depend on that we can't control. It will mean that broadcast radio will simply do what digital radio does. Put the music out there without any frills or presentation. If we're paying them, they have to do the marketing and music discovery. Not us.

If you read the way these hearings went, the senators didn't care one bit about our public service work or our budget problems. All they wanted to talk about was getting this money for billionaire artists who fly in private jets. I wish someone asked Gene Simmons if he flew coach on Southwest to these hearings. He didn't.
 
I'm pretty sure the programming people at the big companies have been aware that at some point this royalty is going to happen. It's one of the many things that we depend on that we can't control.

If you read the way these hearings went, the senators didn't care one bit about our public service work or our budget problems.
And things will change in just a few months if the FCC relaxes ownership rules and we start to find a couple of predictable results...

First, a lot of station trading as everyone tries to get bigger in the markets they most want.

Second, it's a death toll for weaker signals on FM (rimshots, some Class A's) and for many AMs that can't find a religious or ethnic format to employ.

Most markets will have, in all likelihood, one or two main operators. A few might have three or even four, but we won't have the variety of owners we are accustomed to.

And, just guessing, this gives more argument to the artist / label folks to talk about all the money radio is making.
 
And, just guessing, this gives more argument to the artist / label folks to talk about all the money radio is making.

One thing I expect is those senators who are pushing this bill will extend their push to the FCC. Washington is a very small town. There may be a quid pro quo between companies that want expanded ownership rules and the approval of this music royalty.
 
I'm finding it harder than ever to take sides in this fight. I've always supported radio's position for all the reasons repeatedly put forth here, but considering how safe and bland music radio has become, do their arguments still hold water?

If you're an artist, what has radio done for you lately? Most formats are dominated by older music now, playing songs that are 50 years old or more on classic rock, and roughly 30 years old on average at Classic Hits.

A/C breaks no new music with playlists ruled by recurrents and gold tracks, where even the so-called “currents” are often a year old or more. CHR stations have also increased the percentage of familiar older tracks, and most play it safe with new releases, usually trailing the streamers on all but the biggest artists.

That leaves Alternative, which has been reduced to a niche format centered on ’90s acts, while Country runs the same two dozen artists through Nashville’s assembly line of sameness.

Across the board, these formats are super-safe, predictable, and repetitive. Radio has become a research-constrained commodity aimed at a passive, non–music-purchasing audience that’s content to hear the same old thing on an endless loop. Meanwhile, Big Radio keeps pocketing royalty savings while laying off creative workers and doubling down on automation and more of the same.

But then how can you support the music industry’s position, knowing that more than half the royalties would pad the already bloated record label coffers while primarily benefitting the small, privileged group of major-label artists who still get airplay?

In fact, the only radio stations that meaningfully facilitate music discovery and drive record sales are smaller college stations and the tiny handful of Triple-A outlets, many of which are the most financially vulnerable to the labels’ royalty cash grab.

Bottom line: at this point, neither side feels worthy of support.
 
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.
That's an excellent question. Does anyone know the answer?
 
I'm finding it harder than ever to take sides in this fight. I've always supported radio's position for all the reasons repeatedly put forth here, but considering how safe and bland music radio has become, do their arguments still hold water?

It depends on the station. A lot of non-coms invest a lot in new music discovery. You see how that saved them when it came to government money. At one point the music industry wanted to use the royalty to promote more adventurous music, and they were told that was called payola. So they went back to demanding a royalty for everyone.

The fact is that the big successful artists don't need any more money. The ones who need the money don't get played on the radio. So when you look at it that way, this makes no sense. It's just making the rich richer.

In fact, the only radio stations that meaningfully facilitate music discovery and drive record sales are smaller college stations and the tiny handful of Triple-A outlets, many of which are the most financially vulnerable to the labels’ royalty cash grab.

The music industry claims they will have discounts for college and non-commercial stations. But once they get their hands in your pocket, there's no guarantee the early discounts will last.
 
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.

The artist royalty for CDs was based on the contract they signed. It varies by artist. The artist royalty on streaming is a fraction of a penny. It depends on the platform. But it gets collected every time someone listens.
 
The artist royalty for CDs was based on the contract they signed. It varies by artist. The artist royalty on streaming is a fraction of a penny. It depends on the platform. But it gets collected every time someone listens.
So why are the fees not the same for everything. It’s the same song being played everywhere.
 
So why are the fees not the same for everything. It’s the same song being played everywhere.

But usage is different. Everything is negotiable. Apple pays a different rate than Spotify.

Royalties tend to be based on the number of listeners, and that varies.
 
I'm finding it harder than ever to take sides in this fight. I've always supported radio's position for all the reasons repeatedly put forth here, but considering how safe and bland music radio has become, do their arguments still hold water?
You are using personal taste to judge music. We have a greater variety of formats since the changes of ownership limits 30 years ago. And the ways in which music is selected and tested are, despite changing methodologies, is the same as when I first did Top 40 in 1954.
If you're an artist, what has radio done for you lately? Most formats are dominated by older music now, playing songs that are 50 years old or more on classic rock, and roughly 30 years old on average at Classic Hits.
That's because there are legal limits that prevent content that is considered, at least by FCC criteria, to not be airable.

But there are plenty of CHR, Churban, Urban, Regional Mexican, Latin CHR and country stations (among others) that play as much new music as ever.

The difference is that consolidation allowed clusters to have mid-level performers as they combined the whole group for sales. So markets that had 3 CHR station now have one. Heck, when I started to listen to the radio in the mid-50's, there were three viable formats in my market, Top 40, MOR and "Race". And that, at the time, was a top 10 market.

Now we have many more formats and each targets different age, gender and ethnic tastes.
A/C breaks no new music with playlists ruled by recurrents and gold tracks, where even the so-called “currents” are often a year old or more.
But "Hot AC" does. And going back to the 50's and 60's, the traditional MOR stations did not do much to break songs, either.
CHR stations have also increased the percentage of familiar older tracks, and most play it safe with new releases, usually trailing the streamers on all but the biggest artists.
As a former CHR programmer and even station owner, since the 60's we played gold and were careful on new adds as we know the average listener could not deal with too many each week.

And the "king" of Top 40 in many's mind was WABC, which waited weeks if not a month to go on the songs that were breaking per the Gavin report. Our criteria on new songs was, first, big known artists, second, artists with a few hits that seemed to be making it big, and then unknown artists.
That leaves Alternative, which has been reduced to a niche format centered on ’90s acts,
And alternative only survives on a handful of commercials stations and a bunch of non-coms. The genre has been fragmented for 20 years, with different groups liking different subsets. This is not radio's fault.
while Country runs the same two dozen artists through Nashville’s assembly line of sameness.
Obviously you are not a country fan. I am, and find the variety astounding. If you saw the array of artists at this spring's Stagecoach, you would have noticed how varied and interesting the music is now.
Across the board, these formats are super-safe, predictable, and repetitive. Radio has become a research-constrained commodity aimed at a passive, non–music-purchasing audience that’s content to hear the same old thing on an endless loop.
Music radio has done that since 1951 when Todd Storz created Top 40. They looked at the jukebox plays and retail sales of singles, and played the hits over and over.
Meanwhile, Big Radio keeps pocketing royalty savings while laying off creative workers and doubling down on automation and more of the same.
All radio is affected by a 60% decrease in inflation adjusted revenue in the last 2 decades and a huge increase in costs. Several of the largest radio companies do not have positive cash flow or have just tiny profits on operations (EBITDA). No shareholder at iHeart or Cumulus or Audacy or SBS or Beasley is pocketing huge profits.

Sadly, the reductions in staff are due to vastly decreasing revenue. Heck, on Monday TU radio fired all their market general managers and named just three people to manage the eastern, central and western US stations.
But then how can you support the music industry’s position, knowing that more than half the royalties would pad the already bloated record label coffers while primarily benefitting the small, privileged group of major-label artists who still get airplay?
That is a valid point, as the labels lost their profit point of physical sales that had gone back over a century to gramaphone records. Now they want to bite the hand that fed them for so long.
In fact, the only radio stations that meaningfully facilitate music discovery and drive record sales are smaller college stations and the tiny handful of Triple-A outlets, many of which are the most financially vulnerable to the labels’ royalty cash grab.
There are, as mentioned, plenty of formats that play lots of currents... CHR, Hot AC, Country, Urban, Churban and several in Spanish, too. They play with about the same criteria as they always have.
 
So do bigger radio stations pay more?
Radio stations do not pay artist and label fees for AM and FM broadcasts.

Since radio began, artists and record labels felt that on-air promotion helped sell records.

(Sidebar: the musicians union, under Petrillo, tried very hard to keep radio from playing recorded music, even requiring small market station like ones in Chattanooga to have a house bad or orchestra. The labels wanted the promotion, but the AFM stopped "Top 40" and "music radio" from existing until Petrillo lost power around 1950.)

Author, Composer and Publisher fees are based on station size... principally based on station revenue. Just like a coffee shop that seats 30 pays less than a great big restaurant that seats 250 or a little convenience store pays less than a great big department store if they play any kind of music. Even a big stadium plays more than a little one so it can spin "Sweet Caroline" or any other registered song.
 
Radio stations do not pay artist and label fees for AM and FM broadcasts.

Since radio began, artists and record labels felt that on-air promotion helped sell records.

(Sidebar: the musicians union, under Petrillo, tried very hard to keep radio from playing recorded music, even requiring small market station like ones in Chattanooga to have a house bad or orchestra. The labels wanted the promotion, but the AFM stopped "Top 40" and "music radio" from existing until Petrillo lost power around 1950.)

Author, Composer and Publisher fees are based on station size... principally based on station revenue. Just like a coffee shop that seats 30 pays less than a great big restaurant that seats 250 or a little convenience store pays less than a great big department store if they play any kind of music. Even a big stadium plays more than a little one so it can spin "Sweet Caroline" or any other registered song.
When the Yankees play New York New York after every game, do they have an agreement with the estate for rights or do they pay the same publishing fee.
 
When the Yankees play New York New York after every game, do they have an agreement with the estate for rights or do they pay the same publishing fee.
And does the amount paid depend on the attendance for the game after which it was played? Would the payment be more for a sellout in July than for 25,000 on a chilly night in April? Also, don't the Yankees only play the song after wins?
 
And does the amount paid depend on the attendance for the game after which it was played? Would the payment be more for a sellout in July than for 25,000 on a chilly night in April? Also, don't the Yankees only play the song after wins?
They changed that last season. It used to be after every game. Now only if he wins. I think they play Lizas version if they lose.
 
And does the amount paid depend on the attendance for the game after which it was played? Would the payment be more for a sellout in July than for 25,000 on a chilly night in April? Also, don't the Yankees only play the song after wins?
If it is the same public performance rate that applies to stores and restaurants and the like, it's a flat fee that does not change and covers all licensed music from ASCAP, BMI, SESAC and the others. Of course, a stadium could limit songs to just BMI or one of the others, but that would take lots of work as that is not a static state.

There used to be "per performance" rates but I believe no rights group offers them any more... does anyone here know differently?
 
I still fault Gene Simmons for his disingenuous testimony, as if (a) he had just started in the business yesterday and (b) wasn't already getting songwriter royalties.

As far as I am concerned, it would serve him right if radio stopped playing music by Kiss.
 
I still fault Gene Simmons for his disingenuous testimony, as if (a) he had just started in the business yesterday and (b) wasn't already getting songwriter royalties.

As far as I am concerned, it would serve him right if radio stopped playing music by Kiss.
Give me a time machine (or a DeLorean) and I'll make sure the band is never formed. That ought to qualify me for someone's peace prize, no?
 


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