Pay for Performance

Up till now, whenever you hear a song on the radio, the composer and the publisher get paid for that play, but the artists do not.  A big fight is brewing in Washington, according to Forbes, between the MusicFIRST Coalition (The RIAA, Soundexchange, and several artist groups) who would like to correct that omission, and the National Association of Broadcasters, who would like everything to stay just as it is.  The Performace Rights Act would require terrestrial broadcasters to pay royalty fees to performers amounting to 3 – 6% of the stations’ total revenue.  While the Performance Rights Act has been wending its way around the beltway for over a year, it has passed the Judiciary

Committees of both the House and the Senate, and the two sides are being brought together by Congress to hammer out an agreement. Meanwhile Pandora, not included in this particular fight, is paying out $30 million of its $40 million in revenue to licensing fees.  The nut for terrestrial broadcasters would be nowhere near that. 75% of US radio stations would pay $5000 or less for performance royalties.

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