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And The NAB Hits Back

8/20/2012

It didn't take long for the NAB to put out a statement in response to Representative Nadler's proposal, using the recent Clear Channel Big Machine Label Group deal as an example of the two sides working together without government involvement. NAB Executive VP of Communications Dennis Wharton said the NAB strongly opposes Nadler's draft bill. "It fails to recognize the unparalleled promotional value of local radio airplay and would kill jobs at America's hometown radio stations."

Wharton added, "We continue to support private, company-by-company negotiations that are driven by the free market, as was reflected by the recent deal between Clear Channel and Big Machine Label Group. We're pleased that 177 House members and 22 U.S. Senators agree that America's local radio stations should not be subjected to job-killing performance tax legislation that would divert millions of dollars to offshore record labels."




(8/21/2012 10:32:51 AM)
@Ken: "let me repeat myself i think the United States Broadcast Industry is just like the broadcast industry in Iran, North Korea, China and Rwanda."

I agree, now that we have HD Radio/IBLOCK. These terrorist/communist countries have always jammed their airways, too.

- Jammers
(8/21/2012 10:16:23 AM)
let me repeat myself "i think the United States Broadcast Industry is just like the broadcast industry in Iran, North Korea, China and Rwanda."

- Kenn Dardis
(8/21/2012 8:26:26 AM)
One more very important point, quoted from The Washington Post: "American artists and musicians are not compensated for use of their work even in countries that have a radio performance right because we do not have a right here. We are losing about $100 million a year in foreign performance royalties."

http://www.washingtonpost.com/wp-dyn/content/article/2010/04/23/AR2010042305059.html

- Ken Dardis
(8/21/2012 8:14:46 AM)
Re: " "We continue to support private, company-by-company negotiations that are driven by the free market..."

There are thousands of label and hundreds of radio groups that each need to draw up their own agreements (after negotiations), and we haven't seen anything indicating there are other radio groups involved in discussions with any label(s). This is simply not a workable solution

As for Clear Channel's agreement with Big Machine, this is one radio group and one label with only a few artists. It satisfies only an extremely small portion of artists' needs.

The only other countries joining the US in having broadcasters resist payment to performers are Iran, North Korea, China and Rwanda. Everywhere else, these payments are part of the business model.

This is no longer a "radio provides promotion" issue, but one of parity with other music-based businesses (which all provide "promotion," yet pay the performance royalty).

- Ken Dardis

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