• Mediaweek, Wednesday, June 11, 2008 10:30 AM

In the latest volley in the heated debate about whether legislation should force broadcasters to pay musical performers for songs aired on the radio, the radio industry is circulating a new study about the benefits of airplay.

The study is based on data from Nielsen and Pollstar, and shows--predictably--that when music airs on the radio, record sales of that music go up. "This free advertising drives record sales, and is one way local radio provides value to artists and contributes to their financial success," says the study. In other words, since playing music serves as advertising for the artist, the radio station should not have to pay the artist for that musical content.

A House Subcommittee will hold hearings next week on the Performance Rights Act, which would levy new royalties on music airplay. An opposing bill, the Local Radio Freedom Act, has garnered more than 200 bipartisan cosponsors.

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