Rich Fiscus
14 May 2009 12:13
On Tuesday the Judiciary Committee in the US House of Representatives approved the Performance Rights Act for consideration by the full House. If enacted into law as currently written, it would require most terrestrial radio stations to pay royalties to the copyright holder of each recording they play.
Under the current arrangement these broadcasters only have to pay publishers' royalties. This system was put in place based on the idea that radio exposure sells music.
Just like they seem to do with any use of a recording that doesn't make them money directly, the labels have characterized this as piracy. As usual they believe the problem isn't their own business model, but rather that people simply aren't giving them enough money.
The bill is still a long way from becoming law. A companion bill was introduced in the Senate earlier this year, but hasn't made it out of committee yet.
Despite claims that radio exposure no longer drives sales, labels continue to provide music to radio stations free of charge. If they really believe what they claim shouldn't they have stopped by now?
If they do believe it and haven't stopped isn't that the sort of thing that suggest a need for new management instead of propping them up with another royalty scheme?