Senate Hearing Revives Radio Royalty Debate
The topic of performance royalties for radio stations took center stage during a recent Senate Judiciary Subcommittee hearing, marking the first discussion of its kind since 2009. The 75-minute session highlighted ongoing tensions between broadcasters and the music industry, as lawmakers grapple with the question of whether radio should compensate artists for airplay.
Despite a low turnout of Senators, all of whom supported the proposed legislation, Subcommittee Chair Tom Tillis (R-NC) expressed optimism about the potential for progress. He noted a “growing sense” in Congress that the matter needs resolution after nearly two decades of debate.
However, recent statistics suggest a significant challenge remains. Approximately 25% of the Senate and 216 House members have publicly opposed changes to copyright law that would affect AM/FM broadcasting. Proponents of the new royalty fee for stations argue that the non-binding nature of a resolution has stalled legislative advancement for years.
KISS co-founder Gene Simmons, a vocal advocate for the new royalties, emphasized that artists deserve compensation for their work. He acknowledged the promotional value radio provides but contended that the financial benefits are disproportionately skewed. “One of those two is making a fortune, and the other one for doing all the hard work is getting zip,” Simmons stated, indicating a need for reform.
During the hearing, Inner Banks Media CEO Henry Hinton voiced his concerns about the potential impact of the proposed American Music Fairness Act (S. 326 / HR 861). While supporters claim certain small stations may pay as little as $500 annually, Hinton pointed out that over 4,000 stations wouldn’t qualify for such exemptions. He highlighted the financial struggles faced by small market broadcasters, noting that industry revenue has declined by 20% since 2019.
Hinton also cited a letter from Mike Biddle, Program Director at country station WQDR Raleigh (94.7), who reported receiving multiple calls from record label representatives. He argued that the promotional support offered by radio remains invaluable, asserting that the existing ecosystem has benefited both radio and the music industry for over a century.
In contrast, SoundExchange CEO Mike Huppe, whose organization would play a key role in collecting royalties, dismissed the promotional argument, comparing it to sports leagues that must pay for broadcasting rights. “I don’t know why music should be any different,” he remarked.
There was no discussion during the hearing regarding the connection between the royalty debate and broadcasters’ push for AM mandates in vehicle dashboards, though this angle may resurface in future discussions.
If the American Music Fairness Act ultimately passes in Congress, Simmons believes it would receive the President’s support. “I know the President well enough, and he will sign this,” he concluded.
For more information on the ongoing conversation about music royalties, visit the RIAA website.