Brindle Media

Posts Tagged ‘musicFIRST’

Just so you’ll know, I’m not employed by a radio station nor an individual or company which owns radio stations, I am not related to anyone who works in radio, and I’m not a shareholder in any company which owns radio stations. Although many years of my career were spent in radio, I am not a water bearer for any company which owns music-oriented broadcast radio stations.

That said, I find AFL-CIO President Rich Trumka’s remarks at a recent musicFIRST Coalition press conference on Capitol Hill pretty offensive.
Trumka said: “The reckless greed that drives Wall Street is the same as the unconscionable greed that drives the handful of conglomerate corporate radio executives that control 75 percent of our nation’s radio stations. If you care about music, if you care about the right of Americans to get paid for their work, if you care about doing what is right, be a part of the good fight for our performing brothers and sisters.”

“The unconscionable greed that drive the handful of conglomerate corporate radio executives that control 75% of our nation’s radio stations”? Nice rhetoric, Mr.Trumpka but what about the unconscionable greed that drives the handful of foreign-based record companies that abuse their relationships with their artists?

Lets review some facts. There are a little over 11,000 commercially licensed radio stations in America. Around 20%, of those facilities are owned by companies which control 100 or more stations. Clear Channel’s controls 11% and the remaining 9% is split up among 7 or 8 other companies. In other words, 80% of American broadcast stations aren’t owned by companies which Rich Trumka and musicFIRST could describe as “conglomerate corporate radio”.

Chairman of the House Labor and Education Committee, George Miller (D-CA) said: “The important thing to remember is this: Passage of the Performance Rights Act will stop corporate radio from continuing to exploit the labor of working Americans – Americans who spend decades passionately honing their craft to produce works that resonate with our inner angels.”

Chairman Miller appears unaware that these radio stations which he accuses of exploiting musicians are actually investing millions of dollars in air time to promote the careers of musicians and providing FREE commercials by exposing those artists’ music to the audiences that these stations have invested millions of their marketing dollars to aggregate.

At this point, some reader will ask: “But don’t those radio stations limit the number of artists and songs that they play and isn’t that unfair?”

The stations limit the number of artists and songs that they play based on what their listeners want to hear. Research has shown that most radio listeners prefer a limited number of songs on a station’s playlist. The particular songs may change over time but the aggregate number of songs remains relatively constant. It’s even been noted that iPod and Pandora users eventually limit their playlists after their initial enthusiasm for discovery wanes.

Although I’m no longer involved with the radio industry, I did spend many years programming stations and being “worked” by record industry representatives to increase exposure on those songs which were most important to their labels. Increased exposure meant and still means increased revenues for the foreign-owned record companies who are, to quote Chairman Miller, “continuing to exploit the labor of working Americans.”

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

musicFIRST is at it again.

Yesterday, Dionne Warwick was in Washington trying to persuade Congress to pass the Performance Rights Act. According to Dionne, “This is a critical issue for not only those of us who have made music our careers, but for those who are trying to make a name for themselves in the business. Performers from every genre of music should be fairly compensated for their art. Thus far, radio is the only medium that fails to provide artists with fair compensation for the use of their music and we feel it is time for radio companies to join Satellite, Internet, and Cable music distributors in giving musical artists what they have worked so hard to earn.”

I’m sorry, Dionne but could we review your tax records for the past 45 years? I would suspect that a lot of money has flowed into your personal account primarily because of the FREE exposure and promotion you received from radio stations playing your songs in high rotations and on-air personalities reinforcing your brand by praising your talent. I’m sure that your contract with your record labels was designed more in their best interest than yours but that’s not radio’s fault. What all that FREE exposure on radio did for you, however, was increase audience awareness of your talent, increase your TV exposure, increase demand for your live performances and increase the fees you could demand for those performances. Seems to me that you profited nicely from all that FREE exposure.

And before someone posts the same lame comment about radio gets free use of our airwaves and we the people own the airwaves, it would be useful to remember that radio stations are granted short-term licenses to access those airwaves with the promise to operate in the public “interest, convenience and necessity”. Then, companies must invest millions of dollars in order to build their facilities, purchase the equipment, pay the electric bills (which can run into the hundreds of thousands of dollars a year), pay the personnel (on-air staff, engineers, support staff, sales people, management), pay a large
percentage of gross advertising revenues to music rights companies (BMI, ASCAP, SESAC) and pay local, state and federal taxes. If times are good and the station does a good job of serving its listeners, it can earn a nice profit. If times are tight, it can lose money even if it’s doing a good job of serving its audience. So, saying that radio gets “free” use of our airwaves is a bit misleading.

It amazes me that the artists who support musicFIRST’s efforts don’t understand that if the RIAA gets its way and forces radio to start paying for the right to play songs then fewer stations will choose to continue playing music and those stations that do continue to play music will become more selective about what they play. If a station is paying for songs, its budget will dictate that it choose the most cost-effective tunes which will be obvious hits by artists with established track records. Consequently, playlists will become even tighter. I’m not sure that’s the goal that the musicians supporting musicFIRST are trying to accomplish.