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Let’s try access rules for radio

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Web-based and satellite radio stations are treated differently than traditional am and fm radio with regard to royalty payments for playing music. Radio AntennaThe difference is due pretty much only to technical differences in how the radio transmits it’s programming to listeners, and not to any real fundamental difference in the businesses themselves.

Because of this, there have been calls to treat internet radio the same as broadcast radio, and also calls to do the opposite, which would mean adding new royalty payments to the broadcast stations’ obligations.

In opposition to those calls, a group of Congressman introduced a resolution a couple of weeks ago calling for support to continue the performance royalty exception enjoyed by broadcast radio. The resolution notes that this exception serves the public purpose in a number of ways, including that “local radio stations provide free publicity and promotion to the recording industry and performers of music in the form of radio air play, interviews with performers, introduction of new performers, concert promotions, and publicity that promotes the sale of music, concert tickets, ring tones, music videos and associated merchandise.” You can read the full text of the resolution here.

But the truth is that the number of music related businesses benefitting from the free publicity is small. If Congress wants to support this service for music businesses and performers, then they should introduce regulations that would require broadcast stations to include a certain amount of programming provided by independent record labels, by regional musicians, and etc. If it serves a public purpose, then Congress should define that public purpose to include more than a handful of record labels that have the funds and the muscle to marginalize any competition for airplay by smaller labels. Just as the FCC requires a certain amount of public service programming, Congress could require a broader range of musical programming.

If radio wants a break on the cost of doing business, then it can certainly follow a few rules for the public good.


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