Broadcasters and record companies are closing in on a royalties deal that would require local stations to pay a fraction of their revenue — as little as $100 for small and noncommercial stations or as much as 1% for large commercial broadcasters — to labels and artists annually.
The tentative deal would include a federal mandate that requires every cellphone to receive FM radio. It’s a “critically important” part of the plan, said Dennis Wharton, the group’s spokesman.
But the market, not government, should decide whether phones include it, says the cellular industry.
“The backroom scheme of the NAB (National Association of Broadcasters) and RIAA (Recording Industry Association of America) to have Congress mandate broadcast radios in portable devices, including mobile phones, is the height of absurdity,” said CEA president/CEO Gary Shapiro.
“We are completely, inalterably opposed to this,” said Shapiro, head of the CEA, which represents many wireless companies. The cellphone industry says that it could make phones bulkier and shorten battery life.
The NAB argues that radio is a vital source of information during emergencies. Of course many “local” broadcast stations are just repeating a satellite feed, and have virtually no local staff.
Last year, after the both the House and Senate judiciary committees approved bills that would require performance fees for broadcast radio, lawmakers asked the two sides to work out a deal themselves. The groups have regularly discussed the issue since February.
