The Phoenix Center for Advanced Legal and Economic Public Policy Studies released a study, Promotional Effects and the Determination of Royalty Rates for Music, showing that there is no basis for federal law allowing AM/FM radio stations to play music without paying musicians, singers and featured artists. Currently, songwriters are paid royalties when their music is played on the radio, while performers are not. Other platforms, such as Internet, cable and satellite radio, pay performers—but AM/FM radio currently gets special treatment.
“For far too long, large broadcasters maintained they didn’t need to appropriately compensate musicians and other performers, because we get ‘free advertising’ or ‘exposure’ when they air our work. This report demonstrates that the supposed promotional effect provides no rational basis for AM/FM radio to deny compensation to musicians. Now that it’s time for our lawmakers to fix our broken system by enacting the Fair Play Fair Pay Act to ensure hard-working musicians are paid when they are played,” said AFM International President Ray Hair.
Read Promotional Effects and the Determination of Royalty Rates for Music here.