Recording Industry Plays Same Old Tune on Broadcast Performance Royalties (Guest Op-Ed)

February 5, 2022 E Jazz Reporter

“The myopic pursuit of a one-sided legislative solution will continue to leave this issue unsettled and punish the artists that proponents claim to want to help.”

Curtis LeGeyt
Courtesy Photo

Almost four years ago, stakeholders across the music industry came together in support of the Music Modernization Act, legislation that made significant reforms to our music licensing system to the benefit of songwriters, performing artists and listeners. That legislation demonstrated the power of the music community to enact meaningful change in Washington, D.C., when we all work together in support of reforms in law that grow the entire music economy.

At that time broadcasters also committed to lawmakers to sit down with the recording industry to find common ground on our long-standing impasse on the terrestrial performance royalty issue. These lawmakers — Democrats and Republicans — asked our industries to work together in search of a win-win solution that would benefit performing artists while enabling local radio stations to grow our unique service to communities across the country.

Broadcasters rolled up our sleeves and showed up for these negotiations. We offered numerous proposals, and when our concepts were rebuffed, we proffered alternatives. But it’s hard to dance when you don’t have a willing partner. At no point in more than 18 months of discussions did representatives of the recording industry put a formal counter-offer on the table to try to bridge the gap between our positions.

So once again, we find ourselves going through the same old song-and-dance. This week, I testified in Congress in opposition to the so-called “American Music Fairness Act” (AMFA), one-sided legislation that creates a new burdensome performance royalty on local radio stations. Instead of balancing the needs of music creators with those of broadcasters, the untenable economics of the AMFA would drive stations to play less music and undermine our free and local model to the detriment of artists and listeners.

Artists and record executives alike acknowledge that radio is responsible for launching the careers of countless musicians, entertaining tens of millions of people every day, and generating billions of dollars in music, ticket and merchandise sales, as well as on-demand streams, that have produced a music-creation ecosystem that is the envy of the world. The AMFA ignores this reality; local stations of all sizes would simply play less music — if they’re able to stay in business.

But no matter where you may sit on the substance of the AMFA, it fails all of us because it ensures a continued stalemate. The artists who testified this week out of concern for a music licensing system they worry is failing them deserve better.

NAB stands ready and willing to resume meaningful discussions with the recording industry on a framework that addresses a terrestrial performance royalty while also incentivizing broadcasters to innovate through streaming and reach more listeners in an economically tenable way. Such a proposal would grow the pot of both digital and terrestrial radio revenues for music creators and ensure a rising tide that lifts all boats.

It is my sincere hope that the industry will join us at the negotiating table so we can find a comprehensive approach forward, because the myopic pursuit of a one-sided legislative solution will continue to leave this issue unsettled and punish the performing artists that proponents of this bill claim to want to help.

Curtis LeGeyt is president and CEO of the National Association of Broadcasters.

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