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The American Music Fairness Act aims to end a decades-long injustice. If passed, radio stations would have to pay artists for playing artist’s music – but broadcasters are fighting back.
Key Takeaways
- The U.S. is the only major country where terrestrial radio doesn’t pay royalties to performers or recorded-music copyright owners.
- The American Music Fairness Act (AMFA) was introduced to ensure fair compensation for artists on terrestrial radio.
- The bill protects small and local stations with exemptions for those earning under $1.5 million annually.
- The lack of compensation results in an estimated $200 million annual economic loss for American artists.
- Broadcasting organizations oppose the bill, citing potential financial harm to local radio stations.
A Glaring Disparity in Artist Compensation
In a shocking revelation that has rocked the music industry, it has come to light that the United States stands alone among major nations in its failure to compensate performers and recorded-music copyright owners for terrestrial radio play. This oversight has led to an estimated $200 million annual economic loss for American artists, highlighting a significant gap in fair compensation practices.
While over 8,300 AM and FM stations in the U.S. pay royalties to songwriters and publishers, they have managed to avoid paying the very artists whose performances drive their profits. This stark contrast to the practices of streaming services and satellite radio, which do pay such royalties, has sparked outrage among musicians and industry professionals alike.
The American Music Fairness Act: A Step Towards Equity
In response to this longstanding injustice, the American Music Fairness Act (AMFA) has been re-introduced in Congress. This bipartisan effort aims to align terrestrial radio with other music platforms by requiring broadcasters to pay royalties to performers and copyright holders. The bill has garnered support from both sides of the aisle, with Senators Marsha Blackburn (R-Tenn.) and Alex Padilla (D-Calif.) leading the charge.
“ensur[ing] artists and music creators receive fair compensation for the use of their songs on AM/FM radio. This legislation will bring corporate radio broadcasters up-to-speed with all other music streaming platforms, which already pay artists for their music.”
Senators Alex Padilla (D-Calif.) and Marsha Blackburn (R-Tenn.)
The AMFA has made significant progress, passing through the House Judiciary Committee with bipartisan support. This milestone marks a growing recognition in Congress of the need to protect music creators’ rights and ensure fair compensation for their work.
Protecting Small Stations While Ensuring Fair Pay
Critics of the AMFA, primarily from the broadcasting sector, argue that such legislation could impose financial hardships on smaller or local radio stations. However, the bill’s proponents have addressed these concerns by including provisions to protect smaller broadcasters. Stations earning under $1.5 million annually would be allowed to play unlimited music for less than $500 per year, ensuring that local community radio can continue to thrive while still contributing to artist compensation.
“The United States is the only democratic country in the world in which artists are not paid for the use of their music on AM and FM radio”
Sen. Marsha Blackburn (R-Tenn.)
This balanced approach aims to create a fair global market, ensuring that foreign countries pay U.S. artists for overseas song use while also rectifying the domestic imbalance. The bill has gained endorsements from a wide range of organizations, including the AFL-CIO, A2IM, the American Federation of Musicians, the Recording Academy, RIAA, SAG-AFTRA, and SoundExchange.
The Battle Ahead
Despite the progress made, the AMFA faces stiff opposition from broadcasting organizations. The National Association of Broadcasters continues to support the Local Radio Freedom Act, which aims to maintain terrestrial radio’s royalty-free status. This clash between artist rights and broadcasting interests sets the stage for a contentious battle as the bill moves forward.
“Radio conglomerates operating thousands of AM/FM stations across the U.S., make billions in profits, employ legions of lobbyists, and spend millions each year to influence lawmakers, all while continuing to refuse to pay the artists whose songs they play on the airwaves”
SoundExchange CEO Michael Huppe
As the debate rages on, one thing remains clear: the American Music Fairness Act represents a crucial step towards ensuring that artists receive fair compensation for their work, regardless of the platform on which it is played. The coming months will be critical in determining whether the United States will finally join the rest of the democratic world in protecting the rights of its musical creators.