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January 1, 7.5% of All Songs Might Be Pulled from American Radio

Things could get very weird for American radio come January 1st as threats of huge fines may cause stations to stop airing music from artists like U2, John Lennon, Drake, Adele and nearly 70 others. Failing to do so could result in fines of $150,000 per song.

“WTF?” I can hear you say. Stick with me.

The issue is one of licensing. The first thing to understand is that radio stations have to pay for the right to play music as part of their business plan. In American, there’s a new “boutique” licensing company galled Global Music Rights. It’s fighting with the Radio Music License Committee, a group that sets the rates for radio airplay. Pretty much every one of the 10,000+ radio stations in the US use the RMLC to negotiate rates on their behalf.

As holder of the radio rights to these 70-plus artists, GMR is entrusted with getting the best deal its artists. But the RMLC says that the GMR is asking for higher-than-market rates, which led to a breakdown in contract talks. The RMLC sued GMR, accusing them of exercising the “monopoly rights” of their position. In response, the GMR countersued, calling the RMLC an “illegal cartel,” one that pays even less to songwriters than Spotify.

If the situation isn’t resolved, it’s very possible that American radio stations will start pulling songs by GMR-represented artists rather than pay any fines that might be levied for playing unlicensed music.

This could all be just so much bluster. Or maybe not. Read more on the story here.

 

Alan Cross

is an internationally known broadcaster, interviewer, writer, consultant, blogger and speaker. In his 40+ years in the music business, Alan has interviewed the biggest names in rock, from David Bowie and U2 to Pearl Jam and the Foo Fighters. He’s also known as a musicologist and documentarian through programs like The Ongoing History of New Music.

Alan Cross has 38006 posts and counting. See all posts by Alan Cross

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