New Legislation Would Be a Few More Nails in Radio's Coffin

NPR recently reported that President Obama supports legislation that would charge AM and FM radio stations royalties to labels and artists, presumably in place of terrestrial radio paying ASCAP fees.

On the surface this seems like a pretty innocuous move - supported by struggling artists like Tony Bennett, Cheryl Crow and "Money is a drug and MCs are on it" will.i.am - but really it looks to me like just another way the majors are trying to exert control over the musical marketplace and squeeze the last few cents out of their business model before it shrivels up and dies. The royalty rate hikes in 2007 nearly crippled Internet radio and this system would do the same to terrestrial indie stations.

Radio stations that play anything other than Top 40, classic rock or country tend to be locally owned businesses that aren't exactly raking in the cash. New fees on top of operating expenses and the tightening ad budgets of this economy will force most of these stations to run in the red or go under. Sure Crow and the Black Eyed Peas love this move. Their music gets played on Clear Channel stations all over the country, and with these kinds of laws Clear Channel will be one of the few companies able to pay the increased royalties.

But what kind of landscape does this leave us with? The same six songs on every channel played on loop every hour?

Artists deserve to get paid for their work. This is a fact. But moves like this are akin to artists poisoning the well that they drink from. How many small bands thrive on airplay? How often are record sales driven by a first listen on the radio or on a Web site? When up-and-coming bands would kill for the kind of listenership a medium-sized radio station - even in 2010 - commands, how does it make sense to claim that the radio stations are the only ones benefiting?

Musicians and radio stations - both online and terrestrial - should have a symbiotic relationship. When one thrives, both thrive. By increasing royalty fees on what is in essence radio stations advertising their product, the major labels - who not even ten years ago were found guilty of paying stations in exchange for increased radio airplay - are killing an essential source of musical distribution.

Is this the brave new world the online frontier promised young musicians? Not too long ago writers were tripping over themselves to declare the playing field level since now any artist with a guitar and a Myspace account could be discovered and make it big. Now OKGo, a band made famous by YouTube, isn't even allowed to embed their own music videos on their own Web site.

Make no mistake. The major labels would prefer it if customers bought music based on nothing but traditional advertising campaigns and album art. No advanced listens, no peer reviews, no refunds, no returns.