Madam Speaker, I rise today in support of the ``Performance Rights Act,'' which was introduced today. This legislation, long in the making, has the simple goal of requiring that those who generate revenue from the use of music, pay for the…
Madam Speaker, I rise today in support of the ``Performance Rights Act,'' which was introduced today. This legislation, long in the making, has the simple goal of requiring that those who generate revenue from the use of music, pay for the use of music.
Terrestrial broadcasters have a strong and meaningful relationship with the American public. There are few of us who do not have wonderful memories that are accompanied by music played over a radio, and fewer still who have not tuned in to hear news, traffic or emergency information. The American radio tradition is akin to apple pie or baseball. It is part of the American consciousness, and, with the help of HD radio, will remain so.
Even so, the past few decades have seen huge changes in how people consume music. Terrestrial radio once dominated new music awareness. This fact meant that if a consumer wanted to buy a song, they were likely to hear it on the radio first. Radio therefore had a dramatic promotional impact on music sales. However, even at the outset of mass music broadcasting in the United States, when Congress exempted terrestrial radio from paying artists a royalty, terrestrial radio was making money off of artists' work and paying nothing for it.
As time went on and records lost market share to 8-tracks, cassettes, CDs, and now MP3s, and terrestrial radio lost market share to cable radio, internet radio and satellite radio, consumer dependence upon terrestrial radio gradually decreased. Terrestrial radio no longer serves the same promotional role for music sales that it once did, but terrestrial radio is still exempt from paying a royalty to artists. Additionally, the other music platforms do pay for the right to broadcast music.
The ``Performance Rights Act'' encourages parity in music broadcasting by requiring terrestrial broadcasters to pay for the music they use. Stations that gross over $1,250,000 will negotiate with artists to pay a fair royalty. ``Small'' stations, those grossing under that amount, can opt to pay a flat rate of $5,000. Public broadcasters can elect to pay a flat rate of $1,000. Talk radio that only uses music incidentally is exempt from paying as are religious services. All together, approximately 77 percent of all radio will have to pay artists virtually nothing to use music. This bill is not the boogeyman that detractors will make it out to be.
However, this bill is, I believe, unfinished. The songs that individuals consume via terrestrial, satellite, cable, and internet radio contain the same notes and the same voices regardless of which platform does the broadcasting. Yet they pay different rates, sometimes vastly different rates. We need to look further into these disparities, and I look forward to working with Chairman Howard Berman and others on correcting any inconsistencies in current law.
The arguments that supported exempting terrestrial radio from paying a performance right have been eroded by the passage of time and technological innovation. We all yearn for the nostalgia of yesteryear and American terrestrial radio is a big part of that, but our recollections of the past do not support injustices into the future. Radio has changed. Terrestrial radio should pay for the right to use the music from which it benefits.