On August 2, the FMC, in conjunction with AFTRA, AFM, The Recording
Academy and Recording Artists’ Coalition, filed
reply comments [PDF] in the FCC proceeding on the transition from
analog to digital radio (MM 99-325).
The FCC has opened this proceeding to collect feedback from stakeholders
and citizens about the transition from an analog transmission of radio
to a digital transmission. Unlike analog radio, digital radio will
use spectrum very efficiently. The more precise transmissions would
mean that, theoretically, existing broadcasters would be able to use
the channels adjacent to their current license for other uses. In
other words, a station licensed at 90.1 would be able to use the frequencies
90.0 and 90.2 to send data, video, or offer subscription services.
In our joint filing, the artist groups expressed broad support for
and excitement about the opportunities that digital audio broadcasting
presents to citizens and musicians. Clearly, a more efficient use
of the public spectrum means more opportunities for local programming,
niche shows, and more voices on the air.
However, we also urged the FCC to recognize the potential that DAB
(digital audio broadcast) has to disrupt or diminish existing revenue
streams on which musicians depend. There are already DAB receivers
on the market in Europe and Asia that let radio listeners rewind,
buffer, record and store radio broadcasts and songs (check out http://www.thebug.com/
for an example of one available in the UK). This has led many in the
music industry to be concerned that DAB would diminish CD sales and
even displace the emerging Internet technologies that offer legal
downloads or streams to music fans.
As a result, we called on the FCC to recognize the value of recording
artists’ work and ensure that the DAB transition also includes
a technological and regulatory framework that will ensure that recording
artists, songwriters and copyright owners are fairly compensated in
the future. In particular, we expressed the need for broadcasters
to pay a public performance royalty – a royalty that is currently
paid by webcasters, satellite radio and cable subscriber services
but not by terrestrial broadcasters. To explain this difference: if
you heard Patsy Cline singing “Crazy” on regular radio,
she is not paid a royalty, but the songwriter Willie Nelson is, but
if you heard “Crazy” on XM Radio (a satellite service),
both Patsy Cline and Willie Nelson receive a royalty. FMC feels that
the transition to DAB is the best time harmonize these rights and
ensure that performances on digital radio are compensated via a performance royalty.
We also urged the FCC to undertake a full rulemaking on any proposed
measures calling for content protection (aka a “broadcast flag”).
Note that FMC is much more interested in a licensing solution than
a content protection solution, though we do recognize the concerns
of many in the music industry.
Read FMC’s joint reply comments filed August 2 here [PDF]
Press release about the
joint reply comment filing:
The reply comments is the second document that the FMC has filed with
the FCC on this issue. On June 16th, FMC, in conjunction with AFTRA
and AFM, filed initial comments,
reminding the FCC of their congressional mandate to address localism,
competition, and diversity in the transition, and to include musicians
and performers in the policymaking process – not just radio
broadcasters and technology companies – when building a regulatory
framework for Digital Audio Broadcasting.
RELATED LINKS
FCC’s
fact sheet on digital radio
A
good description of the differences between analog and digital radio
by Jim Griffin of Cherry Lane Digital