Bill Overview
Title: American Music Fairness Act
Description: This bill establishes that the copyright holder of a sound recording shall have the exclusive right to perform the sound recording through an audio transmission and addresses other related issues. (Currently, the public performance right only covers performances through a digital audio transmission in certain instances, which means that nonsubscription terrestrial radio stations generally do not have to secure a license to publicly perform a copyright-protected sound recording.) Under the bill, a nonsubscription broadcast transmission must have a license to publicly perform such sound recordings. The Copyright Royalty Board must periodically determine the royalty rates for such a license. When determining the rates, the board must base its decision on certain information presented by the parties, including the radio stations' effect on other streams of revenue related to the sound recordings. Terrestrial broadcast stations (and the owners of such stations) that fall below certain revenue thresholds may pay certain flat fees, instead of the board-established rate, for a license to publicly perform copyright-protected sound recordings.
Sponsors: Sen. Padilla, Alex [D-CA]
Target Audience
Population: people impacted by copyright changes in music broadcasting
Estimated Size: 200000000
- The bill targets the issue of public performance rights for sound recordings, which currently exempt terrestrial radio from paying royalties.
- Establishing a requirement for nonsubscription radio broadcasts to secure licenses for playing sound recordings affects the music industry, including artists and music producers.
- Radio stations will be directly affected, as they will have to pay for licenses to play certain music. This can affect both corporate-owned and smaller stations.
- The royalties from these licenses are designed to compensate artists, producers, and copyright holders for airplay on terrestrial radio.
- The global music listening audience indirectly benefits from potential increased revenues for artists, possibly affecting the variety and quality of music produced.
Reasoning
- This policy significantly impacts artists, music producers, and radio station owners. Artists and producers may see benefits through royalties; however, smaller radio stations might face higher operational costs.
- Not all radio stations will pay more due to the policy; some may qualify for flat fees if they fall below revenue thresholds. Larger corporate stations will likely bear more cost.
- Listeners indirectly benefit from potential increased diversity and quality in music, supported by better compensation for artists.
- Most of the impact will be on stakeholders directly involved in the music and broadcasting industries, including potential changes in content on terrestrial radio.
- Artists have an improved long-term financial outlook due to increased royalties, which could lead to a positive impact on their wellbeing.
Simulated Interviews
Independent musician (Los Angeles, CA)
Age: 34 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- I'm glad to see artists getting more rightful compensation for their work through radio plays.
- I don't expect immediate differences in my financial situation, but over time, more fair payment models are a big win for us independents.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 6 |
| Year 20 | 8 | 6 |
Radio Station Manager (Nashville, TN)
Age: 28 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 3/20
Statement of Opinion:
- This bill could make it hard for smaller stations like ours which operate on tight budgets.
- While I understand the importance of supporting artists, I'm worried about covering costs without cutting staff or reducing content.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 5 | 7 |
| Year 3 | 5 | 7 |
| Year 5 | 6 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Corporate Radio Executive (Chicago, IL)
Age: 45 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 10.0 years
Commonness: 2/20
Statement of Opinion:
- Our stations can absorb the new costs, but we may need to increase ad time or cut less popular shows.
- In the long-term, it could influence our strategic planning on format and content selection.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Music Producer (New York, NY)
Age: 39 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 4/20
Statement of Opinion:
- This policy is a long-needed reform to get artists and producers their fair share from radio airplay.
- I'm optimistic about the increased revenues this will bring, allowing me to invest more in emerging talent.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 9 | 7 |
| Year 3 | 9 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 9 | 7 |
Radio Show Host (Dallas, TX)
Age: 50 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 3/20
Statement of Opinion:
- While this policy supports artists, my show may bear the cost as stations react to potentially higher licensing fees.
- I'm hopeful listeners will appreciate content that continues to support fair artist compensation.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 8 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
College Student / Part-time DJ (Austin, TX)
Age: 21 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 3.0 years
Commonness: 6/20
Statement of Opinion:
- This might impact our station's budget, but I totally support that artists get paid more fairly for their work.
- I'm curious to see how this changes the range of music we play over time.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Independent Radio Station Owner (Portland, OR)
Age: 60 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 4.0 years
Commonness: 2/20
Statement of Opinion:
- We're already tight on budget, so paying more for licenses means we have to look for additional funding or cut somewhere else.
- It's a tough balance between supporting artists and keeping the station afloat.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 4 | 5 |
| Year 2 | 5 | 5 |
| Year 3 | 5 | 5 |
| Year 5 | 5 | 5 |
| Year 10 | 5 | 5 |
| Year 20 | 6 | 5 |
Freelance Sound Engineer (Atlanta, GA)
Age: 26 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 6.0 years
Commonness: 5/20
Statement of Opinion:
- This provides a clearer route for artists to receive money from radio plays, which might increase work opportunities on recording projects.
- It takes time for policy to reflect on ground-level job opportunities, but it’s crucial for fair compensation.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 6 |
| Year 20 | 7 | 6 |
Taxi Driver (Miami, FL)
Age: 44 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 0.0 years
Commonness: 7/20
Statement of Opinion:
- I just hope the radio stations keep playing a good mix of songs. I likely won't notice the changes happening behind the scenes.
- If the stations have to play more ads to cover costs, it might be a bit annoying.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 7 |
| Year 2 | 7 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
App Developer (Seattle, WA)
Age: 32 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 0.0 years
Commonness: 10/20
Statement of Opinion:
- This policy seems fairer to artists, although it won't impact my music consumption directly.
- I support anything that helps musicians earn more from their creative works.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 8 |
| Year 2 | 8 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 8 | 8 |
| Year 10 | 8 | 8 |
| Year 20 | 8 | 8 |
Cost Estimates
Year 1: $0 (Low: $0, High: $10000000)
Year 2: $0 (Low: $0, High: $10000000)
Year 3: $0 (Low: $0, High: $10000000)
Year 5: $0 (Low: $0, High: $15000000)
Year 10: $0 (Low: $0, High: $20000000)
Year 100: $0 (Low: $0, High: $50000000)
Key Considerations
- The legislation primarily aims to correct a disparity in royalty distribution between digital and terrestrial broadcasters deserving greater analysis of its effects on industry dynamics.
- Impacts on smaller stations whose business models might be too tightly stretched by new costs need careful monitoring.
- Assessment of how increased revenue affects artist and producer behavior in terms of content investment and diversity is important.