musicFIRST coalition launches, draws the NAB's ire - Orbitcast

musicFIRST coalition launches, draws the NAB's ire

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musicFIRSTAt 1pm ET today, various artists and music groups announced the launch of a new coalition: musicFIRST (Fairness in Radio Starting Today).

The group's members include Christina Aguilera, Michael Buble, Jimmy Buffett, Celine Dion, Toby Keith, Godsmack, Ludacris, Rihanna and Gretchen Wilson - over 100 artists in all, and growing at a rapid pace.

The coalition's goals are to ensure that all performers are paid a performance right when their music is aired on the radio. MusicFIRST wants to hold the multi-billion dollar radio industry to the same standards as its competitors.

Of course, the NAB doesn't agree.

"NAB will aggressively fight RIAA's proposed performance tax on local radio stations," said NAB Executive Vice President Dennis Wharton. "Congress has long recognized that radio airplay of music generates millions of dollars in revenue for record labels and artists. Were it not for radio's free promotional airplay of music on stations all over America, most successful recording artists would still be playing in a garage."

It's funny to hear the NAB talk about a level playing field, yet they don't pay the same performance fees as satellite radio or Internet radio (or Apple for that matter). It's not like terrestrial radio is a nascent industry either, they've been very profitable for many years. So terrestrial enjoys the monopoly of "localism" combined with cheaper-than-everyone-else royalties. All under the guise of "serving the common good."

How convenient. 

Now, don't get me wrong, there's no question as to the music industry's motivation here. But entertain this as a thought: if terrestrial radio was paying performance fees - just like everyone else is - perhaps the royalty fees of other broadcast mediums wouldn't be so high?

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18 Comments

Of course they don't like the idea of paying for music. They're used to getting paid to play it.

*cough*payola*cough*

Wasn't one of the biggest arguments from the NAB was how they promote the music for the artists? Best part is, there are some stations that can show what song is playing on the dial, but not every station does it. Some stations just show their call letters, like 98 KUPD in phoenix just shows "98 KUPD" on the display of the radio.

Satellite radio is constantly promoting the music by showing what band is playing, and what song it is, and if it is new music the display will show that as well as when their new CD is coming out if they have one coming out shortly.

This is just laughable that they still fight this. How much does Sirius and XM each pay to recording companies, just curious. But in my opinion, Satellite gives just as much, if not more promotion to bands as terrestrial does. Only difference is Satellite won't promote concerts as much, granted they do say when they start a tour, but they won't point out every date. The good thing about local FM stations, they can promote the date the come to your hometown, and offer free ticket promotions and such.

Ok I want to hear from Walt on this one.

Terrestrial promotes bands that would otherwise still be playing in a garage. Ask Little Steven van Zandt what he thinks about how terrestrial radio promotes new bands.

NAB is just laughable anymore.

Wow! The NAB and the RIAA are fighting. It's a battle of two of the biggest scumbag organizations on the planet...

Can I root for both to lose?

So terrestrial enjoys the monopoly of "localism" combined with cheaper-than-everyone-else royalties. All under the guise of "serving the common good."
================================================
Well, I can not agree that local stations have a monopoly. Thats like saying roads nere in NJ have the traffic monopoly on a local scale. Fact is that despite being the "evil Terestrial Machine" these stations still compete with eachother and for listeners and advertizers. But I fully agree with the royalty part and the "Guise".

if these artists had any balls they would try to pull all their songs from the low paying terestrial stations. but as usual ... whats right will never happen.

No Merger!
No Merger

No God Damn Merger!

I hate the NAB and do not care if they lose, but I'm really tired of these greedy artists. F them right in the mouth.

well mr rehr...no royalty money for the artist..

and your membership/owners get paid to play it ,the playing field needs to be level across all digital or analog platforms,wifi,cellphone,internet ,tv, pda,slacker, etc. you play it pay for it..a very small and equal fee for all.

this is from r&r today 720k in five months one lable group controled by univision

Keith Berman & Jackie Madrigal

Ex-Fonovisa VP of promotion Daniel Mireles is alleging that he was ordered to participate in payola or lose his job -- and was fired after later saying he couldn't do it anymore.

In a potentially explosive lawsuit filed in Los Angeles Superior Court against Univision Music, Univision subsidiary Fonovisa GM Alfonso Larriva and Univision VP of marketing and promotion Alberto del Castillo, Mireles claims that Larriva and del Castillo told him in December 2005 to give PDs cash to up the airplay of Fonovisa's records. Mireles says that when he protested, saying he'd been personally investigated when Fonovisa was hit with payola charges in 1995, Larriva and del Castillo told him he'd lose his job if he didn't take part.

Mireles says he reluctantly negotiated payments with more than 50 PDs -- including a deal with a Los Angeles PD guaranteed three spins a day for eight Univision records in exchange for $10,000 in cash. Further complicating things, Mireles claims an indie was brought in to "wash" the money: Univision cut checks to a company called Chelsea Rose, and Mireles got cash back that he then delivered to the PDs. All in all, Mireles alleges he received $720,000 between January and May 2006 from Chelsea Rose to give back to PDs.

According to the suit, filed in November of last year, Mireles told his bosses in May 2006 that he wasn't going to participate in payola after June because he didn't feel comfortable engaging in the illegal activity. Mireles says that after trying, and failing, to reach Univision Music Group president/CEO Jose Behar to protest, he was fired on June 28, 2006 -- right before his end-of-June deadline.

Univision Communications senior legal counsel Ary Towfighi declined to comment when reached by R&R.

Before you feel sorry for the poor little terrestrial stations.... terrestrial radio made $21 BILLION last year, and the music industry made $12 BILLION.

Neither is "poor" so to speak, but its obvious that AM/FM radio is an all-profit industry.

ALL music outlets should pay the same fees. Either EVERYONE should be free, or EVERYONE should pay. The difference between digital and analog is a pointless argument.

Why cant Sat radio just create there own artist? New rising stars occur everyday...why not discover there own talent and gain rights to them.

musicFIRST should also go after royalties from stations using their images/likeness to promote their product/stations. Sure it is free advertisement for the artist but there is more negative impact from cheap promotional items, bad drivers cruising around cities in vehicles covered in large images of artists, etc. There is nothing like being cut off in traffic or rear-ended by a van covered in a 3 foot image of Elton John.

Screw NAB... radio stations SHOULD pay for the songs they play. Maybe that would add to the variety of music FM plays.

Here, I fixed Mr. Whaton's statement:
"Were it not for the free music programming on stations all over America, most successful radio stations would still be broadcast out of a garage."

Sure, the musicians are somewhat greedy but who among us doesn't want as much as we can possibly get from what we have?

Musicians HAVE to be greedy because record company executives (you know the fat suits with no talent or ability at all) are getting very rich on the backs of the artists.

Given the obscene percentages that they take from every dollar earned the musicians want a larger pie to get their draw from. Broadcast radio makes more money from music than record companies do. It's a fact, and it's a joke. Make radio pay the same 7.5% that Sirius and XM pay. I've bought many more CD's from bands that I have heard on Sirius/XM than I ever have FM radio.

I've bought many more CD's from bands that I have heard on Sirius/XM than I ever have FM radio.

Same here.

I'm curious, can the RIAA just not allow terrestrial radio to play their songs? They're a cartel. They can boycott the NAB if they want until they come to the table and negotiate a deal, yet that probably won't happen because the RIAA is actually a bit worried that there is merit to the NAB's defense that they wouldn't sell records without their promotion.

I'm just sort of thinking it would be interesting to see something like this happen. I wonder if some deals regarding royalties would almost turn into a reverse payola outcome with the RIAA reducing the fees of artists they want to promote and increasing fees of those that are losing favor.

heres another small problem with a label and radio stations looks like the fight is starting...

man its dog eat dog now......guess the label is trying to say we dont need radio play.........and that could be very ture in todays world


By Ken Tucker and R.J. Curtis

Music Row and country radio are buzzing about a cease and desist letter sent to radio by Sony BMG Nashville.

The letter, written by Sony BMG Nashville senior VP of legal and business affairs Katherine E. Woods, demands that radio stop playing a Tracy Lawrence album cut featuring Sony BMG artist Kenny Chesney, who records for the company’s BNA Records.

Two versions of “Find Out Who Your Friends Are” appear on Lawrence’s “For The Love” album, which was released on his own Rocky Comfort Records on January 30. One version, which was serviced to radio as a single last fall, includes only Lawrence’s vocals. The second version includes vocals from Lawrence’s longtime pals Tim McGraw and Chesney.

The timing of the letter is curious since the song has been on the R&R Country Chart for 40 weeks. The song currently sits at No. 4 on the chart, which is based on data from Nielsen BDS. (BDS does not differentiate between the two versions when compiling the data.)

“SMBG did not grant ‘singles’ rights to Rocky Comfort with respect to the album versions of this song and has not authorized any radio station to play this recording,” the letter says. “If your station is playing the album version of the song ‘Find Out Who Your Friends Are’ embodying Kenny Chesney’s vocal performances, SBMG demands that you immediately cease such unauthorized broadcasting. Thank you for your cooperation.”

Sony BMG Nashville chairman Joe Galante and executive VP Butch Waugh, as well as BNA VP of promotion Rick Moxley, were copied on the letter.

"This is nothing more than an issue between a major record label and radio,” David Newmark, head of country promotion for CO5 Music, which is working the single to radio on behalf of Rocky Comfort, tells R&R. “That issue is whether radio can play an album cut or not."

Joel Burke, PD for Lincoln Financial KYGO/Denver says that he’ll continue to play the album version. "I'm not a legal expert, but I don't think anybody can tell us what album cut we can or cannot play. It's available out there for public consumption, and if I choose to play cut nine off an album that I think is going to work for our radio station, I'm going to play it."

Other programmers agreed, although some allowed that they would consult with their company’s legal department for guidance on the matter.

A request for additional comment from Sony BMG’s Woods was not returned at press time.

Nasty. Broadcasters should seriously blacklist every single artist on that list. See how long it takes for them to come crawling back begging for a song to be played on the radio.

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