Los Angeles, CA — The nation’s Black radio stations are at the edge of their seats, waiting to see if empty DJ booths and dusty equipment will be their fate. Rep. John Conyers, Jr. (D-Mich.) authored a piece of legislation that could put many Black radio stations out of business. The Performance Rights Act (H.R. 848) will enforce a royalty fee for broadcasting non-subscription or free transmissions.
Karen Slade, general manager at local radio station KJLH, says the bill would definitely hit Black radio hard.
“What you’re talking about doing is increasing our operating costs, when we’re in the middle of a recession and everything is going south; and you’re talking about putting another liability or performance tax on a station that generates revenues from advertising.” she says.
Because radio is an advertisement based business, the dwindling market has put a strain on Black stations. Slade says primary advertising comes from the waning financial institutions and the automotive industry. She also explains that advertising agencies do not heavily market to minority communities and use a “broad-brush approach” when dealing with Black radio.
“The challenge for me is we promote artists, we play music, we love music and we love artists. It’s a mutually beneficial relationship,” Slade explains. “But to put more taxation and more licensing fees on us when we promote you and help you sell records and help you sell out concerts. It should be a win-win for both, but it’s not, which is unfair to us.”
Though Slade supports artists and their efforts, she says this would further weaken Black radio.
“This is a very strenuous time for Black radio. To have one more liability placed on us would be a hardship,” Slade expresses.
Critics say the bill will take into account the poor economy and its impact on small and minority owned businesses by giving certain radio stations a time buffer to pay these fees.
Conyers sympathizes with radio stations saying, “I know times are tough, and it is not the intention or goal of this legislation to drive broadcasters into bankruptcy or to bring about a widespread consolidation of the industry.”
He says the goal of the bill is to establish a system of fairness for recording artists and among broadcasting stations. Cable, satellite, and Internet radio have paid royalty fees for years.
To give small stations some reassurance, members of the committee have created a sliding scale to determine fees and accommodate stations with an annual gross profit under $100,000.
Conyers says small stations will most likely pay under $500 a year for unlimited access to music.
“I modified the Performance Rights Act last week with an amendment I crafted with several members of the committee… Industry data shows that three-quarters of America’s radio stations will be eligible for the scale, and 90% of African American-owned stations will be protected,” he says.
Linda Vilardo, Chief Administrative Officer for Radio One says this bill is “going to be problematic” for Black radio. “We believe we already provide support to record labels and artists by playing their music on the radio. The radio industry cannot afford another expense.”
MusicFIRST, a coalition of artists, musicians, and lovers of music have banned together on this issue and have been fighting for change for years. Marty Machowsky of musicFIRST says this bill is long overdue and that music is what brings in the revenue for radio stations.
He says, “It’s fairly simple. The radio industry is a powerful political force. There have been efforts over and over again to have the law changed, but have not been successful.” As technology has changed, so has the radio industry. Machowsky says with streaming online music, satellite radio, and television music stations paying royalty fees, it is inevitable that the law will be changed.
Most countries around the world have already adopted a royalty fee system. Though many westernized countries play American music, U.S. artists cannot collect royalty payments for radio play because this nation cannot reciprocate the same action to foreign artists.
Jeanette Hawes, singer and member of award winning group “The Emotions,” fully supports the bill, “I absolutely don’t think they should take [royalties] away.” She says because the economy is straining not only corporations and businesses, but also unions like AFTRA and SAAG, it is essential royalties be paid to artists for their hard work.
Conyers says he is committed to keeping the airwaves open to African American and other minority stations while providing rights to artists.
“I plan to remain diligent in ensuring the vibrancy and competition available in the broadcast and other relevant markets,” Conyers states. “I understand how important and emotional an issue this is, for it cuts to the core of who we are as diverse communities across the country.”
The bill is currently awaiting consideration from the House.
