Despite more muted Q2 results hinging greatly on the ad revenue from iHeartPodcasts as opposed to OTA, musicFIRST took Tuesday’s iHeart earnings call as an opportunity to attack radio as the coalition tries to salvage the floundering American Music Fairness Act.
The criticisms arose from musicFIRST Chairman Senator Mark Pryor. In his statement, Pryor accused iHeartMedia of hypocrisy and greed, making bold claims about the company’s refusal to pay music artists for AM/FM radio plays while overlooking the complex financial landscape that broadcasters navigate.
The Senator said, “As the broadcasting giant celebrated its quarterly financial performance with investors on Wall Street, their efforts to convince lawmakers that they can’t afford to pay music artists a single cent when their music is played on AM/FM radio continue.” He went on to throw shade at the National Association of Broadcasters and “Big Radio.”
By failing to include other radio broadcasters’ second-quarter earnings results, many of whom faced net losses amid economic turbulence and the exponential rise of operating expenses, musicFIRST once again cherry-picked facts in an attempt to support their narrow narrative of big, bad radio.
Maybe broadcasters should start charging the record labels and artist for airplay time if they are found to be connected to these two bit royalty companies like MUSIC FIRST, SOUNDEXCHANGE and whatever other ones decide to come along.
If these record labels and artist aren’t getting their payments from BMI, ASCAP and SESAC, then they need take up the “problem” with them. Forming a bunch of royalty type companies like musicFIRST is only fragmenting the industry.
In the meantime, iHeart pays artists and labels for streaming on the iHeart app. Don’t they get any credit for that? Artists don’t appear to be angry at iHeart, given their voluntary appearances at iHeart concerts and awards shows. The fact is that radio companies follow the law. They pay the parties who are legally obligated to get paid. Artists figured out a long time ago that the way to get paid for radio airplay is to write songs. Elvis discovered that in the 1950s. So today, artists who write get paid for FM airplay. Very simple.
Who is this guy claiming to speak for artists? He doesn’t. MusicFirst is owned by the RIAA. He’s a fraud.
Not sure where the facts come from but someone pays ASCAP, BMI and SESAC don’t they? Radio gets paid for advertising-but a 3-minute Taylor Swift song must have some value. Does any company celebrate a losing streak? Some of the fees broadcasting pays supports the senators railing against radio. So much talk, so little progress.
It’s time, though for Congress to realize that many McBroadcasters ARE financially losing their shirts. And even the small guy is getting eaten alive by continued requests of more and more by publishing organizations. There are too many radio stations, too much competition and it is time to allow broadcasters to right-size by signing off loser properties. I know this is tough love. But, it’s going to have to happen.
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