• by Fern Siegel , June 18, 2007

The musicFIRST Coalition wants Congress to pass a law that requires compensation for performers whose music is played on the radio.

Comprised of recording arts, music companies and industry groups like the RIAA (Recording Industry Association of America), it says singers--be they superstars or background voices--deserve payment when a song airs on AM or FM radio. No specific financial terms were revealed.

By law, only songwriters are paid royalties when songs play on analog radio. In the digital universe, like iTunes, royalties are paid to copyright holders. Radio broadcasters only pay performers if songs are played on the Internet during a simulcast or streaming, but are otherwise exempt. Previous efforts to push the payment issue failed.

The NAB, which represented more than 8,000 radio and TV stations, is opposed to the measure, saying it is tantamount to a tax on U.S. radio stations. The broadcast association says airplay gives the music industry a free outlet, as well as a venue for new artists to gain visibility.

"Congress has long recognized that radio airplay of music generates millions of dollars in revenue for record labels and artists," Dennis Wharton, the broadcasters group's executive vice president, said in a statement. "Were it not for radio's free promotional airplay of music on stations all over America, most successful recording artists would still be playing in a garage."

However, Mark Kadesh, executive director of musicFIRST, accuses "corporate radio" of refusing to "pay performers even a fraction of a penny for their voice and creativity." He says he wants everyone given fair treatment--whether they are emerging artists or those from long ago. Adds Recording Academy president Neil Portnow: "Hundreds of millions of dollars that rightly belong to copyright owners and creators continue to go unpaid."

Given poor sales, record labels would see tangible benefits if musicFIRST's effort succeeds.