Congress poised to help AM Radio while ignoring Payments to Performers

Congress is poised to hand broadcasters a multi-million gift by guaranteeing a place for AM radio in every vehicle while ignoring a bill to finally pay US musicians when their songs are played on the radio.

Congress poised to help AM Radio while ignoring Payments to Performers

The AM Radio in Every Vehicle Act, which requires U.S. auto manufacturers to only produce vehicles with that can receive AM broadcasts is being fast tracked and expected to become law before the end of the year. 59 senators and 246 House members from both parties have signed on as co-sponsors.

Meanwhile the American Music Fairness Act has languished for three years. This proposed law would have the US join virtually every other country in the world in paying musicians when their songs are broadcast.

If passed, radio stations that have under $1.5 million in annual revenue and whose parent companies fall under less than $10 million in annual revenue would pay a special rate of less than $2 per day ($500 annually) to play unlimited music. Other exemptions for public, college and other noncommercial stations and other very small stations who would pay as little as $10 per year.

“bad optics for Congress”

“And it’s not just the U.S. market. Because American broadcasters don’t pay royalties to foreign artists, foreign broadcasters don’t pay royalties to American artists.” points out artist advocate David Newhoff in an op-ed for The Hill. “Moreover, the relationship between the AM Radio in Every Vehicle Act and the American Music Fairness Act may be more than just bad optics for Congress.”

“After all, regardless of any other rationale to keep AM humming, this bill is a gift to iHeart, Cumulus and the nation’s other corporate radio broadcasters,” says Newhoff.

Trade groups across the music industry spectrum are urging voters to reach out to Congress and MusicFirst has shared this contact form.

Bruce Houghton is the Founder and Editor of Hypebot, a Senior Advisor at Bandsintown, President of the Skyline Artists Agency, and a Berklee College Of Music professor.