Over 300 recording artists, including major music industry figures, are urging lawmakers to pass a bill that would require radio stations to compensate them for the rights to air their songs.
In a letter sent to congressional leaders, celebrities like Aerosmith, Barbra Streisand, Céline Dion, Gloria Estefan, James Taylor, Jelly Roll, Lil Jon, Lin-Manuel Miranda, and Mariah Carey argue that they are being deprived of billions of dollars in royalties they believe they rightfully deserve.
“For decades, corporate broadcasters have unfairly exploited an outdated loophole in the law, profiting from advertising revenue generated by the unlimited use of free music,” the letter states. “Each year, AM/FM radio stations play almost a billion songs. Meanwhile, massive radio corporations rake in billions in ad revenue without paying a dime to the artists behind the music.”
The letter calls for immediate passage of the American Music Fairness Act, which would create a new revenue stream for performers.
Most broadcasting stations subscribe to performing rights organizations that handle licensing and pay royalties to music publishers and songwriters. However, performers do not receive royalties unless they are also songwriters.
Radio industry representatives argue that both broadcasters and musicians have mutually benefited from the exposure radio airplay provides. They contend that the royalties paid through licensing agreements are already costly, and adding more fees could harm the struggling radio industry.
“Additional royalties could financially cripple many local radio stations and negatively impact the millions of listeners who depend on local radio for news, weather updates, emergency information, and entertainment,” said the National Association of Black Owned Broadcasters in a statement.
The American Music Fairness Act includes provisions for small and independently owned stations, allowing them to pay as little as $500 annually to play unlimited music.
The artists who signed the letter argue that in the digital age, free radio airplay benefits broadcasters more than the artists themselves.
“When I was starting out, radio offered free promotion for artists who were looking to make it,” said singer-songwriter Carly Simon. “That’s no longer the case. In today’s digital world, fewer Americans discover new music on the radio. Instead, AM/FM radio stations make billions in ad revenue each year without compensating the artists whose music drives their audiences. This needs to stop.”
In addition to the letter, R&B group Boyz II Men will present their case to lawmakers on Capitol Hill Thursday, meeting with members of both the House and Senate.
“It’s outrageous that big radio companies earn billions in ad revenue while denying royalties to the performers whose music draws listeners in the first place,” said Boyz II Men members Nathan Morris, Shawn Stockman, and Wanyá Morris in a joint statement. “We hope Congress will listen to artists and pass this bill.”
Although various versions of the American Music Fairness Act have been proposed over the years, the bill has not yet reached a vote in committee.
