Posts Tagged ‘Congress’

Resolving The Radio/ RIAA Impasse


In his blog today, Jerry Del Colliano offers his solution to the radio/RIAA Performance Rights Act standoff:

“1.Agree upon a very, very small fee for radio stations and guarantee the rate for the next seven years. Of course, you’ll never get the seven years but start low and give an increase — a small one — at one or two points along the way.

2. Local, independent operators (mom and pops), the real heart of local radio, should be totally exempt from any fees. I believe this can be negotiated in. Local operators are helping their communities and local and regional economies, they deserve a break. This is the strongest argument for local radio — where local radio actually exists — and this is the workaround.

3. Radio groups operating under 30 total stations should get an additional break no matter what market they are in because 30 stations constitutes a small group by today’s consolidated radio numbers. The number 30 can be 40, or 50 — it’s negotiable.

4. Large consolidators like Clear Channel, Citadel, Cumulus and others should pay the highest fee — but even that should be comparably low. Remember, the music industry just wants to get rid of the performance exemption so it can raise these percentages as soon as possible. Their compromise might have to be accepting pennies on the dollar for the first seven years.

5. This is a must and only a fool would knowingly agree to pay additional music royalty taxes for terrestrial radio without it. Radio stations would be exempt from paying these charges for their podcasting or online streaming of programming that is separate and apart from their terrestrial radio signal. The future is mobile Internet and as a result, this is the concession that radio operators need to get a leg up on the new frontier. The radio industry can argue, okay — you get some music royalties for terrestrial radio under certain circumstances but you give us music in this new space for free while we take the next seven years to build the podcasting and mobile and streaming businesses. It will be worth even more to you when we use our know-how to build these platforms and you can get a royalty on them as well later.”

You can read Jerry’s full blog at http://insidemusicmedia.blogspot.com/2010/04/radio-royalty-solution.html

The Fairness Doctrine

As a political moderate and independent, I have concerns that a Democratic majority will let their biases override good sense and will create rules and laws which restrict freedom of speech on broadcast radio outlets. They seem to have some misguided notion that corporate edicts dictate the content of talk radio when, in fact, conservative talk radio replaced moderate/liberal talk radio because conservatives tended to be more passionate about and loyal to their favorite talk shows than did moderates and liberals.

Those in Congress who advocate the return of the Fairness Doctrine don’t seem to understand that when radio was deregulated during the Reagan era and there was an explosion of new frequencies on the dial each station’s programming had to become more focused and predictable in order to survive. Power was transferred from the programmers to the listeners who were able to get what they wanted when they wanted it and knew where to find it on their radio dials. Now, with streaming, podcasts, Twitter and soon WiFi distribution of Internet radio, there are abundant opportunities to hear different opinions for those who want to hear them.

Obviously, there is a liberal audience available and NPR stations whose programming tends to be more politically progressive than commercial radio boast large and loyal audiences. In fact, the success of public radio with listeners with moderate and/or liberal political views might be a reason why commercial radio stations have been largely unsuccessful in cultivating a significant audience base of those listeners.

Twitter