Additional Royalties: Still Unjustified

Okay, folks. Brace yourselves, as today I will be opinionated. There is a lot flying around the media about the Performance Rights Act (PRA), or as our sponsors at the National Association of Broadcasters (NAB) call it, the Performance Tax.  One of the most common assertions of those who support it is that the money collected goes to the artists. That’s not quite so accurate, as it turns out.

A lot of big names in music have stepped up to support the PRA, most recently Dionne Warwick, who personally lobbied Congress in support of the legislation. Big names, indeed. Funny, isn’t it, how no one of less than millionaire standing seems to support this. Why is that?

Could it be because there is no fonder ambition for most up-and-comers than to get some airplay? I think so. That promotion is vital, and is marked by increasing stages of success: local airplay, regional airplay, and national airplay. It has always been, and continues to be, the chief means of discovering new music.

Now, I’m sure there are those among you shaking your heads and thinking that I am “corporate shill” as you read this. I beg to differ. I spent several years in New Orleans working as a promoter of grassroots-level art and music. I’ve had the pleasure of working with bands ranging in genre from bluegrass to death metal. Most of my work in radio has been at either college or community stations. I’m about as far from a “corporate shill” as you can get.

What I do have is perspective gained from watching band after band shooting for airplay. Too many of the high-profile supporters of the PRA desire performance royalties. To unsigned bands, it creates a barrier. As a station manager responsible for the bottom line, would you be as willing to be adventurous in your choice of playlist if you had additional fees to deal with? Probably not, especially during economic times like these. As a result, it becomes harder and harder to break new music. Sounds like it really helps the artists, doesn’t it?

I agree wholeheartedly with Corey Dietz in his recent column on About.com’s Radio section:

Most struggling bands would kill to receive substantial radio airplay which solidifies the standing of a band or artist on a national scale. In this respect, the trade between radio airplay and not having to pay the performer a royalty is more than justified. That’s just my opinion – you can leave yours below.

Image: crazyneighborlady / CC BY 2.0

New NAB Boss Gordon Smith’s Introductory Speech

The new top dog at the National Association of Broadcasters (NAB), Gordon Smith,  gave his first public speech since taking the helm.  The setting was the 2009 NAB Radio Show opening address held at the Pennsylvania Convention Center in Philadelphia.  Here are his words as the crowd heard them that day:

It is an honor and a privilege to stand before you as the incoming president and CEO of the National Association of Broadcasters.

I’ve been fortunate to meet with many of you and learn more about the challenges you face, and the opportunities that lie before you in this digital age.

It’s both an exciting and a challenging time for the broadcasting business, and I plan on hitting the ground running as your president and CEO to ensure your voices continue to be heard back in Washington, D.C. As a member of the Senate, I worked across party lines to get legislation passed. Now, my politics are the interests of the National Association of Broadcasters, which translates into serving radio and television broadcasters and the American people.

Having served on the Senate Commerce Committee, I’m familiar with the issues that impact America’ s local broadcasters. I am also keenly aware of, and amazed by, the public service that you provide to your communities each and every day. In towns big and small, broadcasters provide their communities with national and local news, deliver informational programming, report vital emergency information and offer unparalleled entertainment choices. You are the glue that connects your friends, family and neighbors to each other.

As broadcasters, you take seriously your responsibility to be a fundamental resource for your local communities and your commitment to providing public service. That is an awesome responsibility.

To call oneself a broadcaster is truly answering to a higher calling. It’s knowing you’ve been entrusted with the public’s airwaves, and recognizing that what you report and air impacts the lives of your viewers. You serve your communities in remarkable ways, improving the quality of life and fostering the principles of localism.

And it’s going to be my job to make sure policymakers and the rest of America understand the many ways broadcasters give back to their communities.

America’s local radio and television stations are integral parts of the towns and cities they serve.

Broadcasters’ contributions to their local communities are diverse, enormously valuable and make a major impact on towns and cities all across the country-in large part because each individual station has the latitude to serve their audience’s unique and specific needs.

But many of the legal and regulatory challenges broadcasters face in Washington, D.C., such as the performance tax and the Satellite Home Viewer Extension and Reauthorization Act — or SHVERA — can affect your ability to support your communities and innovate to meet the demands of today’s rapidly changing media landscape.

As Charles [Warfield, NAB Radio Board president] mentioned earlier, you have a dedicated team of professionals working to ensure you are represented in Washington, D.C., and I cannot wait to join them. But as a former Senator, I know that it is the commitment from association members — the grassroots strength of the NAB — that makes an incredible difference. You must continue to come together to fight for the future of broadcasting.

I want to commit to you, that you also have a new president and CEO who is dedicated to advocating on behalf of all broadcasters and focused on providing the best service possible to our members. Too often in Washington, D.C., we’re defined by labels. The label I want to be defined by now is chief advocate for America’s broadcasters. The issues that we face are many, and I know that there are challenges ahead. But with input from our leadership and our members, we will focus on growing our strengths, improving our weaknesses and always serving as the premier advocate for America’s radio and television stations.

One of our great strengths is the value that we provide as free, over-the-air broadcasting. And we must continue to drive the rollout of innovative platforms to deliver your content and demonstrate the great possibilities of radio and television.

Charles spoke about the Radio Heard Here campaign and building a strong future for radio by embracing new technologies. And we’re moving forward with these many initiatives like FM capable cell phones, HD Radio and Internet streaming.

These are all very exciting opportunities and it’s really encouraging to see radio come together and innovate in this digital age. And while I know this is a radio crowd, there is also much to look forward to with the advent of digital television. There are many doors opening for television broadcasters with the acceleration and development of mobile digital television products and services. It’s amazing to think we will be able to watch live TV anywhere we are. Mobile digital television will transform the way we watch television.

Advances in technology are giving broadcasters opportunities to find better, more innovative ways to deliver the high-quality content and services that local communities expect and deserve. The ability of broadcasters to operate in a marketplace free of unnecessary regulation will only help to accelerate the development of new broadcast technologies.

You will be hearing more from me about these issues in the months ahead, so stay tuned.

It is exciting to see that broadcasters have their eyes on the future, and there are strong plans today to build a stronger tomorrow. I know that many of you are trying hard to survive in this challenging economy. I know it hasn’t been easy. But even in these difficult times, you are still there for your communities — always there to assist and provide a lifeline during times of crisis.

That is something you should all be proud of. And that’s one of the many reasons I’m proud to be here standing among you today.

This is a strong industry with a bright future. And I am very excited to be a part of it. It is not only an honor to stand here among you — it is also an inspiration. Thank you for having me here today. I look forward to serving as your president and CEO and can’t wait to get started.

Image: NAB Radio Show logo / Fair Use