Category: Performance Tax

What Radio Is Watching For In Washington During 2024.

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There’s lots of unfinished business for broadcasters in Washington as the new year begins, from pending legislation in Congress to proposed rulemakings at the Federal Communications Commission. In the latest installment of Inside Radio‘s Radio Outlook 2024 series, we look at the top regulatory issues facing the industry this year.

Priority One: AM Radio

There is no bigger issue for the radio industry right now than pushing Congress to pass a bill that would direct the Department of Transportation to issue a rule requiring that AM broadcast stations be accessible in all passenger motor vehicles manufactured in, imported into, or shipped within the U.S. The AM Radio for Every Vehicle Act (S. 1669) is pending on the Senate floor. Yet without 60 votes lined up, Senate Majority Leader Chuck Schumer (D-NY) is unlikely to even bring it up for a vote. But supporters like Senator Ted Cruz (R-TX) are expected to try to attach the bill to a piece of must-pass legislation. Yet there remains bipartisan skepticism in the House where some lawmakers have said they are uneasy with such a mandate that favors one industry over another. Supporters think if the Senate passes the bill, it could give them the momentum they need in the House.

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JCPA and AMFA Are Dead In D.C.

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Klobuchar Loses ‘Lame Duck’ Vote On JCPA. Is AMFA Dead, Too?

With the Journalism Competition and Preservation Act’s omission from a Congressional omnibus bill, there will likely be no legislative action during this Congressional session. At the same time, the much-ballyhooed but lightly supported American Music Fairness Act, introduced by now-retired Democratic House Member Ted Deutch of Florida, appears to have also met its end.

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NAB Launches Attack Ads Ahead Of Royalty Bill’s Expected Advance In Congress.

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Despite a near-majority of House members on record as opposing the creation of a performance royalty placed on radio stations, the National Association of Broadcasters says it expects a bill that would do just that will move forward in the coming weeks. The NAB says it expects House Judiciary Committee Chair Jerrold Nadler (D-NY) to bring up for a vote the American Music Fairness Act (H.R. 4130) and by its headcount, there are enough supporters of the proposal on the Committee for the bill to advance to the full House for consideration.

Nadler, a longtime supporter of a performance right for AM/FM airplay, held a hearing on the bill last month. If adopted, the American Music Fairness Act would create a performance right on AM/FM airplay, with rates that would be set for most stations by the Copyright Royalty Board. The main target is larger radio groups. Stations that fall under $1.5 million in annual revenue and whose parent companies make less than $10 million in annual revenue would pay $500 per year in performance royalties. And even smaller stations – those with less than $100,000 per year in revenue – would pay ten dollars a year.

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Big Country Stars Thank Radio

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From Dierks Bentley and Jon Pardi performing at The Ryman to Thomas Rhett, who played opening night of CRS at the Amazon Music sponsored event, the gratitude from country artists was clear; thank you for playing our songs. It’s the goal every country artist has and not one complained that radio stations were playing their music for free and they wanted to be paid.

That theme continued when songwriters played their big hits at Bob Kingsley’s Acoustic Alley Thursday night. The relationship between country artists and country radio stations is rock solid. It’s a relationship that both sides know produces number one songs and loyal listeners.

Warner Nashville CEO John Esposito went even further on the topic. During an interview with Mike McVay Esposito said, on the music side of things you cannot win just on streaming. “Radio is still a big discovery vehicle. It’s a big win for us when we get into the top 20. That’s when we start making money.”

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Higher Rates, But Some Concessions For Radio In New Deal With BMI.

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Broadcast Music Inc. (BMI) has begun notifying the 10,000 radio stations and broadcast groups that license its music about the new terms of its agreement with the radio industry. Under a settlement to the four-year old dispute between the Radio Music License Committee and BMI, broadcasters will pay more for the music they use from its repertoire for the period that covers January 2017 through December 2021. The agreement calls for stations to pay 1.78% of their annual gross revenue for on-air spins, less a standard deduction of 12%. That’s a modest increase compared to the 1.7% rate under the previous deal and higher than the 1.4% rate the radio industry had initially proposed in 2016.

Salem CEO Ed Atsinger, who chairs the RMLC, says the rate is “in line” with what the industry has paid to ASCAP and BMI for decades. “While the RMLC certainly would have preferred to report a rate decrease,” he said in a letter to broadcasters, “during the course of negotiations, BMI was able to substantiate that its affiliates’ radio spin share had increased relative to ASCAP’s.” He also said pointed out the two agreed to maintain a sliding scale based on station revenue, which will be especially helpful in the current business climate. “The percentage-of-revenue license structure means that fees will adjust along with station revenues during these uncertain economic times,” said Atsinger.

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Why J.Lo And Shakira Aren’t Getting Paid For The Super Bowl Halftime Show

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Jennifer Lopez used to have a little, now she’s got a lot—thanks in part to her ability to clock seven-figure grosses at every tour stop. But don’t be fooled: Jenny from the Block won’t be adding any more cash to her coffers for her Super Bowl halftime gig, at least in terms of performance fees. Along with Sunday’s co-headliner Shakira, her only monetary reward will be union scale and coverage of production costs.

It’s the same setup that acts from Bruno Mars to Beyoncé have agreed to in recent years—and though each is capable of commanding seven-figure nightly grosses for their solo live shows, they forgo payment on Super Bowl Sunday in exchange for the publicity that comes with playing to a televised audience of some 100 million people. Representatives for the two singers and the NFL didn’t respond to requests for comment, but the halftime acts’ reasoning is clear.

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How Much J Lo & Shakira Get Paid For Super Bowl Halftime Will Surprise You

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While both performers can be found on Forbes‘ list of the top 10 highest-paid women in music, you might be surprised to learn how much Jennifer Lopez and Shakira get paid for the Super Bowl halftime performances. While Lopez has previously pulled in millions from touring, she and Shakira will make exactly $0 when they perform at one of television’s most-watched live entertainment events. Yes, that’s right, although they will perform for one of television’s biggest audiences, neither performer will earn a direct paycheck for her work.

In 2019, Forbes described the Super Bowl halftime show as “a massive commercial in front of over 100 million people.” Meaning that although artists don’t get paid by the NFL to perform, they’re essentially given a starring role in front of a massive audience without having to cover any of the associated high costs. In essence, they’re working for exposure (much like that unpaid college internship you worked).

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Politicians Coming After Radio

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As the NAB battles to prevent radio stations from having to pay for the music they air, legislation has been introduced that may pave the way for radio managers to have to dig deep into their wallets. It’s called the AMFM Act. Here are the details…

The Ask Musicians for Music Act was introduced by Representatives Jerrold Nadler (D-NY) in the House and Senator Marsha Blackburn (R-TN) in the Senate. The AMFM Act gives music creators control of their own work by requiring broadcasters to obtain consent before playing their music. Under the AMFM Act, artists who want to allow terrestrial radio to continue to use their work for free can choose to do so. Artists who seek compensation for their work can exercise their right to negotiate rates for the use of their sound recordings from broadcasters. Both bills provide special treatment by protecting small, public, college, and other non-commercial stations.

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