MusicFirst Offers Flat Rates to Small Radio Stations

The SoundExchange/RIAA-backed lobbying organization MusicFirst has offered small radio stations the option to pay a low, flat rate for the right to broadcast sound recordings from its member labels. Unlike webcasters, terrestrial radio stations have traditionally not had to pay performance rights, since radio had been considered promotional, but the labels are changing their tune when it comes to giving broadcast television and radio a free pass (here's my theory on why that's the case).

Under the proposed plan, small music stations would pay $5K per year, while non-commercial and college stations would pay $1K per year. This would be in addition to fees paid to BMI/ASCAP/SESAC to songwriters and publishers. The proposal does not set a limit for what constitutes a small radio station.

SoundExchange's John Simson said, "the MusicFirst Coalition isn't trying to put radio out of business like the NAB (National Association of Broadcasters) would have you believe. We want us all to march to the same drumbeat, one that won't be easy to achieve, but that we hope isgoing to be fair."

This might seem like a fair deal for stations, because the promotional value ofradio is in question now that so many better alternatives are availableonline. But Cathy Rought, spokesperson for the FreeRadioAlliance, which represents a slew of terrestrial broadcasters,
says the offer actually represents an attempt by the labels to shiftthe debate from Congress to the Copyright Royalty Board, where the rates can be adjusted upwards later (the CRB
notoriously decided on webcaster performance rates that will disruptwebcasting as we know it without Congressional intervention).

"Don't be fooled by the recordlabels' proposal for a lower performance tax on small and noncommercialbroadcasters. Just ask Internet radio howwell that deal has worked out for them. Or better yet, look at what happened inCanada with their 'discounted rates.' Similar 'preferred'
rates were enacted legislatively, only to be attacked by the record companiesduring the first rate proceeding at the Canadian Copyright Board.

"It is quite clear the record companiesdesperately want a foot in the door as a starting place to advance rates in thefuture. They want to move the battle fromCongress to the Copyright Royalty Board, where they can petition for ongoingrate increases on all broadcasters, big and small."

(via radio ink)