MusicFirst Sends Royalty Proposals To Congress
Music industry insider Radio Ink has obtained a document being circulated on Capitol Hill by the musicFirst coalition proposing flat performance-royalty rates for "small commercial radio stations," noncommercial stations, and college stations.
The group, whose members include the Recording Industry Association of America, SoundExchange and others, was formed this summer to lobby for a performance royalty from AM and FM radio. [Read more here]
The proposal would change would do away with broadcasters' royalties exemption and have small commercial stations pay $5,000 per year while noncommercial and college stations would dole out $1,000 a year.
Stations that "make only incidental uses of music," such as talk radio, would not pay at all for music, the publication said. Stations that use music but are not chiefly music formats would receive a "per program license option."
The Free Radio Alliance spoke out in an e-mail to reporters on Wednesday that said: "Don’t be fooled by the record labels’ proposal for a lower performance tax on small and noncommercial broadcasters. Just ask Internet radio how well that deal has worked out for them."
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