Recording Academy Pres./CEO Takes A Swipe At Radio

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Recording Academy Pres./CEO Takes A Swipe At Radio

Post by jdenver » Mon Feb 14, 2011 8:49 am

While most in radio don't like the idea of the performance royalty, I was pretty surprised that Neil decided to move this thorny subject to the Grammy telecast. The truth is -- and label greats like SONY MUSIC Chief Creative Officer CLIVE DAVIS have publicly backed this up -- that sales really kick in once radio gets behind a song with airplay.

This performance royalty issue isn't a settled matter, but there is no disputing radio's continued strong influence in "moving the sales meter" for artists in the face of other platforms vying for consumer attention. 270 million weekly radio listeners can't be overlooked as not being part of the process and artist's success. ... e-at-radio

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Re: Recording Academy Pres./CEO Takes A Swipe At Radio

Post by fmdj1 » Mon Feb 14, 2011 8:55 pm

Indeed. As I stated in my reply to the article, the worst thing about this is that it is being sold as a sham to help underpaid artists. musicFirst released the ad about a musician who performed a staple of classic rock radio who now lives off his wife's pension because "radio is robbing him of royalties". I was talking to a guy who was in DC last year to talk to a senator who had to follow Nancy Sinatra who went in saying radio had left her father a penniless and broken man when he died. Right. Frank Sinatra was destitute and it was because of radio. If you believe that, I have a bridge in Brooklyn I'd love to sell you.
The truth of the matter is, musicFirst is backed by SoundExchange, and SoundExchange is boarded by, you guessed it, the RIAA. So consider how SoundExchange works. Artists have to go to their site and sign up for royalties. SoundExchange does not appear to seek out the artists with any significant effort. (As proof, their current list of unfound artists from just 1996-2000 is almost 7,000 artists long. They won't display the list beyond that, though their head once admitted it was near 40,000 unfound artists) If artists don't find their site and sign up for the royalties within 3 years, SoundExchange can, at their discretion, take the royalties in forfeit. All royalties are split 50-50 between performing artists and copyright holders. In over 70% of cases, the copyright holder is the record label.
So this is a cash cow for labels. It will do little more than buy a hamburger a month for those artists getting any airtime. But the labels don't want you to know these dirty little secrets.
As a side note, another dirty secret labels don't want you to know about. It used to be that artists sold away their profits on record sales because they knew their money would come in concerts. Now labels are putting it into the contract of the latests bands that they get a cut of the ticket. See how much the record labels care about the artists? And they want people to think radio is the one screwing these guys over.

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Re: Recording Academy Pres./CEO Takes A Swipe At Radio

Post by radioelizabeth » Fri Feb 18, 2011 1:18 pm

I found the passive aggressive assault on radio rather annoying.

The plug for satellite and internet radio caused concern as well, since it appeared he lacked information on the research regarding radio's influence and audience.

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