Featured Article:

Radio Stations Propose Paying to Play Music

The article says: "For more than 70 years, over-the-air radio stations have played music without paying the performers who recorded the songs."

Note Opinion: Performance royalties are tracked and paid out by the performance rights organizations like ASCAP, BMI, SESAC, and SoundExchange. The royalty trail begins when the song is registered with one of the three performing rights organizations mentioned above. Once a song is registered, it becomes part of that PRO's collection and is available to all of its users. Most of those users have a "blanket license" to use any or all of the PRO's music, however some users license on a per program basis and only pay for the music they actually use.

From Article:

This month, the National Association of Broadcasters released what it described as a framework of a deal in which stations would pay a total of about $100 million a year in performance fees.

The association’s outline suggests that the largest stations pay a performance fee of 1 percent of net revenue, and smaller stations a lower rate or none at all. While labels and musicians have long sought performance fees, broadcasters have argued that the stations provide important promotion for artists, and that a fee might put small stations out of business.

Even if a final compromise is reached, it would still need Congressional approval.

Note Opinion: So the point of the article that this would be a major change is very valid.

From Article:

The framework released by the broadcasters calls for a federal mandate that every cellphone sold in the United States include a chip to allow FM radio reception — a “critically important” part of the plan, said Dennis Wharton, the group’s spokesman. Having radio available in all cellphones could help broadcasters compete with online streaming services like Pandora, which are popular on mobile devices. Mr. Wharton said the chip would help provide a public service, as information during a local emergency could be heard on a phone.

Note Opinion: The survival of the radio industry may depend on this change.

Article:
http://www.nytimes.com/2010/08/23/business/media/23royalties.html?src=busln

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Other Articles & Blogs:
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Article:

There may be an FM radio in your next cell phone whether you want it or not. The National Association of Broadcasters is lobbying Congress to stipulate that FM radio technology be included in future cell phones.
In exchange, the NAB has agreed that member stations would pay about $100 million in so-called performance fees to music labels and artists. Radio stations would be required to pay performance royalties on a tiered schedule with larger commercial stations paying more than smaller and non-profit stations.

Article: http://www.informationweek.com/news/hardware/handheld/showArticle.jhtml?...

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Article:

Cellphones are on the cutting edge of technological innovation. But they may also offer an old-fashioned service — FM radio — if a controversial new proposal gains traction in Washington.
Groups representing broadcasters, musicians and record companies say they may ask Congress to require that new mobile phones include equipment to receive FM.

The idea emerged in a proposed compromise for a dispute over whether musicians and record companies should receive royalty payments from radio stations that air their tunes.

It makes sense because "broadcasters provide a tremendous lifeline service" by keeping people informed during emergencies such as hurricanes or terrorist attacks, says National Association of Broadcasters spokesman Dennis Wharton.

But others say that FM radio chips and antennas would drain batteries, add to costs and take up space that could be used for new technologies.

Article:
http://www.usatoday.com/money/industries/technology/2010-08-23-fm23_ST_N...

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Blog:

Six technology trade groups wrote to lawmakers on Monday to oppose a deal that could end a decades-long standoff between broadcasters and the recording industry.

The tech groups said the possible deal would have collateral effects on another industry: cell phone-makers.

“It is simply wrong for two entrenched industries to resolve their differences by agreeing to burden a third industry - which has no relationship to or other interest in the performance royalty dispute - with a costly, ill-considered and unnecessary new mandate,” the letter said.

In question is a possible deal between the the Recording Industry Association of American (RIAA) and the National Association of Broadcasters (NAB).

Blog:
http://thehill.com/blogs/hillicon-valley/technology/115443-tech-trade-gr...

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Blog:
Everybody is in a dither over whether the National Association of Broadcasters and the Recording Industry Association of America are going to cut a deal in which they both agree to the Performance Rights Act, if Congress mandates that all mobiles have to include FM radios.

I can’t see why lawmakers would want to do that (besides to make big content and big broadcasting happy). Besides, lots of handsets already have FM radios, including my neat Droid X.

Blog written and with video:

http://www.radiosurvivor.com/2010/08/22/inside-the-droid-x-fm-radio/

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