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Originally Posted by KarmaContestant
I think this is all fluff and baloney.
So, here's the deal - record labels and artists want radio stations to pay them a per-play royalty each time they play a song. Good for artists, good for labels - on the surface - at least as far as money is concerned.
The reality is that the artists and labels that sign these deals will simply get little to no airtime. Why would any corporate, shareholder-profit-driven radio station choose to fill their playlists with pay-to-play songs when the vast majority of choices are not pay-to-play?
Why play one of four Fleetwood Mac songs and pay a royalty, when they can play any other artist and pay no royalty?
Until this pay-to-play royalty system is required by law for all recording artists in the U.S., it will only hurt the ones who do sign these deals.
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Matt, radio stations have always had to pay a royalty on every song they play. The ads they sell bring revenue dollars into the station. BMI and ASCAP monitor all the radio stations in the world to collect royalties for their artists. What this particular deal does, is remove the middle man (i.e. the record company).