So much has been discussed about HR 848; the Performance Rights Act that it’s time for the Prime Minister to weigh in on the matter with a “No" to HR 848. I’ve read the opinions in support of HR 848 from musicFirst which ignited the concern over performance rights copyright/compensation. On the musicFirst website it states, “People who love music understand that creativity, talent and hard work are required to bring it to life. The goal of the musicFIRST (Fairness in Radio Starting Today) Coalition is to ensure that aspiring performers, local musicians and well-known artists are compensated for their music when it is played both today and in the future."
At first glance the aim looks good but when you research how the creators will get paid I have a problem with the mission. Almost every artist can tell you stories about how they have been swindled and beaten by record companies. The public has seen it glamorized in films like the Five Hearts Beats. Cadillac Records, and the Temptations. I wonder why in the world artists and musicians want the record companies to handle the monies again. Under HR 848 the revenues from the performance fee automatically go to the record companies which then distributes the money to the artist with the record company getting half off the top. It’s seemed under this relationship the “creators” are allowing themselves to be swindled again. That’s like asking the same person who has slapped you once to slap you again.
Record companies failed to prepare and lost millions as the Internet ushered in the digital age. Does anyone remember Napster? The biggest seller of music today is iTunes. Music distribution has gone to bits! The record industry forgot to do their homework and did not invest in research to find and create new models to secure revenue in the digital era. It’s all about bits not mass CD’s.
I don’t know but to me that’s like holding a homeowner liable for an accident that occurred in front of their home. When the homeowner did not tell the driver to drive down his block or was the homeowner driving the car at the time of the accident. The driver and the insurance company are responsible. The compensation to the artist should come from the record company and the artist should negotiate performance compensation before radio plays the song .
The fair, present and future compensations the artist seeks should come from the revenue the record makes from sales and other promotions. The record companies are responsible for the artist losing revenue at the start of the digital era because the record company lacked future vision when the digital era arrived and did not invest in preparing to save and secure itself from losing revenues. It's not fair to radio that artists and record companies are allowed to create a compensation scheme to essentially make up for the lost revenue. An additional fee could motivate broadcasters to reduce the amount of music played. Such reductions would harm broadcasters, their listeners, copyright owners, and likely consumers of recorded music.
Supporters of the Performance Right Act also argue that other countries allow a Performance Fee. I don’t know the history of relationships of how other countries handle radio and the music industry. However, I will be arrogant to say this. No other country is as diverse as the
Another issue I have with the Performance Rights Act is how the performance fee will affect educational non commercial and community stations which do not allow advertising. . Most of these stations barely make it on their present budgets and this fee will cause many to cease playing music depriving the public of what little new and alternative music that is available on terrestrial stations. Many artists who are really trying to get exposed rely on the college, educational non commercial and community stations to build up their audiences. And it would seem by these stations ceasing to play music that would do more damage than good to the artist.
If I owned a radio station and this Act became law the first thing I would do is make it more costly for music to be played on the air. Somebody is going to have to pay for fee I have to pay, Right? New artists will undoubtedly have to pay more to get their music exposed. And that exposure will be for a limited time on radio. Artist with the oldies but goodies can forget it, there will be no more oldies shows it will be too costly to air oldies. So it looks like in the long run the artists both known and unknown will hang themselves if they support this bill. Radio should be exempt from the performance fee because radio was first on the scene. It's like radio is the founder of the organization. Founders have certain rights and exemptions until death and radio is a long way from death. With the new methods of distribution that the digital era provides artist should focus on trying to escape sharing revenue with the record companies.
With all due respect to the supporters of HR 848 the Performance Rights Act, I respectfully disagree and support H. Con. Res. 49 the Local Radio Freedom Act.
The Prime Minister