With musicFIRST hosting a press conference Monday to unveil its next step to come after radio to pay to play music, Davis Broadcasting CEO Greg Davis has written a letter to members of Congress asking them to reject any attempt to hit radio with another fee. Here’s why…
Davis says any new legislation, such as the American Music Fairness Act,, which would require radio stations to pay a performance royalty every time they play a song, would “inflict significant harm on my stations and the thousands of other local radio stations that serve America’s communities every day.”
Davis says while the AMFA would only charge smaller stations $500 per year, this is not a nominal fee as the supporters of the legislation suggest. “Nothing could be further from the truth. The AMFA contains no provision capping these reduced fees in perpetuity. From my experience in operating radio stations, I know that costs rarely stay the same or decrease over time. Instituting a performance fee – no matter how nominal at first – would most certainly lead to ever-rising fees over time, regardless of a broadcaster’s size.”
Davis also says a performance royalty could “also put a lid on success and taper small broadcasters’ dreams of growing their businesses.”
musicFIRST and supporters of the AMFA in Congress have really been targeting radio’s larger companies such as: iHeartMedia, Audacy, Cumulus, Townsquare and others they say are not paying their fair share to artists.
The radio industry has always touted a symbiotic relationship with artists stating that playing their music is very beneficial to them due to radio’s audience size and close relationship with listeners.
Read Davis’ letter HERE.