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Radio Should Pay for Playing Music, Say Lawmakers

  • Bloomberg, Thursday, October 15, 2009 10:17 PM

Radio station owners such as CBS Corp. would have to pay new fees to play music on the air under legislation just approved by the Senate Judiciary Committee.

The measure would establish a royalty to be split between recording artists and labels. (Satellite and Internet radio already pay such fees.) Broadcasters making less than $50,000 can pay a flat annual fee of $100, and stations making less than $1.25 million can also pay a flat fee, per the proposal. Similar legislation passed the House Judiciary Committee in May.

Music labels, including Warner Music Group, Vivendi, and Sony Music Entertainment, say their artists deserve to be compensated for the value their songs bring to radio stations. However, broadcast companies including CBS, Clear Channel Communications, Cumulus Media and Citadel Broadcasting oppose the legislation, saying that radio play promotes music and should remain free.

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