Tuesday, October 26, 2010

Response To NAB Royalty Plan Is Mixed...

Now that the NAB has presented the music industry with a list of terms that radio can buy regarding a performance royalty - what's the response to it? In a word - it's mixed. It's been reported that two months after the first framework for a potential settlement was announced, the musicFirst Coalition won't rule out the changes proposed by the NAB Radio Board but they're not ruling it in either. The reason the NAB has issued its proposal now is to keep Congress from ruling on performance royalties. "NAB remains 100% opposed to performance fee legislation pending in Congress," NAB Radio Board chair Caroline Beasley says. She adds, "However, in a good faith effort to resolve this issue in the best interests of both radio and the music industry, we have endorsed a solution ensuring a solution ensuring that broadcasters have a foothold in digital platforms of tomorrow." ...

Terms of the proposal include:
  • Permanent removal of the Copyright Royalty Board from rate-setting of transmissions of terrestrial on-air music or Internet streaming.
  • Resolution of the "AFTRA issue" outside of the legislative process by the musicFIRST coaltion that would facilitate simulcast of over-the-air radio commercials on the internet.
  • musicFIRST's acknowledgment and recognition of the unparalleled promotional value of terrestrial radio airplay.
  • Simplified airplay reporting requirements similar to the model used by ASCAP/BMI.
  • Congressionally-mandated radio-activated chips in mobile devices such as cell phones and BlackBerry smartphones, with an acceptable phase-in period and inclusion of HD Radio chips when economically feasible.

The Radio Board says that the performance fee would mirror the actual percentage of radio-activated mobile phones in the U.S. Once market penetration of radio-activated mobile devices reaches and maintains a level of 75% of all mobile devices, broadcasters agree to pay the full 1% terrestrial transmission performance fee...

Having worked on both sides of this issue, my educated guess is that this plan will have several revisions before it's finalized. Since the Copyright Royalty Board, AFTRA, musicFirst, chip, cellphone and smartphone manufacturers are included in the proposal, they'll have their say before this is all done. You can read the entire proposal terms here...

10 Timeline Memories:
1.1965] Sir Beatles: The Beatles receive MBE (Member of the British Empire) honors at Buckingham Palace...
2.1972] Peace and love man: National security adviser Henry Kissinger declares "peace is at hand" in Vietnam...
3.1984] Baboon heart: A newborn with a severe heart defect is given the heart of a baboon in an experimental transplant. She will live 21 more days...
4.1990] "Happy Trails": William S. Paley, founder of CBS, Inc. dies from kidney failure at 89...1994] One-man band, Wilbert Harrison suffers a fatal stroke at 65...
5.1994] Passing the peace pipe: Israeli Prime Minister Yitzhak Rabin and Jordan PM Abdel Salam Majali sign a peace treaty in a ceremony brokered by President Bill Clinton...
6.1996] A clear jewell: Federal prosecutors clear Richard Jewell as a suspect in the Olympic park bombing in Atlanta...
7.2001] Patriot Act: President George W. Bush signs the USA Patriot Act, giving authorities unprecedented ability to search, seize, detain or eavesdrop in their pursuit of possible terrorists...
8.2002] Russian justice: A hostage siege by Chechen rebels at a Moscow theater ends with 129 of the 800 plus captives dead, most from a knockout gas used by Russian special forces who storm the theater...
9.2004] Karzai elected: The final vote count in the Afghan presidential election gave a resounding victory to interim leader Hamid Karzai...
10.2005] Fall Classic: The Chicago White Sox win their first World Series since 1917 by defeating Houston 1-0 in game 4...

Music Memories:

Commentary:

Join host Marla Sitten and award-winning songwriters Dave Gibson, Wynn Varble and Chris Wallin for a fall songwriting seminar at Jim Oliver's Smoke House in beautiful Monteagle, Tennessee, November 5 - 7, 2010. Visit http://thesmokehouse.com/ for additional information...

"Happy Birthday...happy birthday":

Sasha Cohen (26), Keith Urban (43), Natalie Merchant (47), Rita Wilson (54), Jaclyn Smith (63), Hillary Clinton (63), Pat Sajak (64), Bob Hoskins (68) & Edward Brooke (91)...

Timeline Countdown: NBA jumps center tonight with Miami at Boston, one day until game 1 of the World Series, 5 nights until Halloween, 12 days until Standard Time and 30 days until Thanksgiving...
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