Two bills are back in motion in the U.S. Congress—the AM Radio in Every Vehicle Act, and the American Music Fairness Act (AMFA). As I argued in a post for The Hill last May, if the first bill is to become law, then the second bill should also become law. While the AM radio provision arguably has some public-serving benefits, it is unavoidably a favor to broadcasters—and to pass it without finally delivering long overdue justice for music artists would be unconscionable.

AM Radio in Every Vehicle

The AM Radio in Every Vehicle Act, mandating that all new vehicles include receivers for the AM band, was initially drafted in response to the auto industry signaling a move away from AM radio in new cars. For instance, in electric vehicles (EV), the powertrains interfere with AM radio reception, but even manufacturers of traditional powertrain vehicles were recognizing a downward trend in AM listeners and, therefore, planning to discontinue AM receivers in new sound systems. Thus, Senator Ed Markey (D-MA) and Representative Josh Gottheimer (D-NJ) sponsored the AM Radio in Every Vehicle bills, which gained bipartisan support, albeit along partisan lines.

Republicans emphasized the importance of conservative talk radio while Democrats highlighted the role of AM in the emergency broadcast system and its reach to underserved markets. Make of those rationales what you will (e.g., most people likely get their emergency messaging on their cellphones), but there is no question that AM in Every Vehicle would be a legislative favor to broadcasters, extending the life of terrestrial radio as the market moves toward alternatives like streaming and podcasts. Even if the market eventually abandons the AM band, the bill can serve as a precedent for FM radio, where more drivers listen to music. And that is significant because U.S. broadcasters still do not pay royalties to music artists for terrestrial radio play. That’s where AMFA comes in.

American Music Fairness Act (AMFA)

While the AM Radio bill was reintroduced this week by Rep. Frank Pallone, Jr. (D-NJ), Senators Marsha Blackburn (R-Tenn.), Alex Padilla (D-Calif.), Thom Tillis (R-N.C.), and Cory Booker (D-N.J.) reintroduced AMFA. “The United States is the only democratic country in the world in which artists are not paid for the use of their music on AM and FM radio,” said Senator Blackburn. “This legislation would close an outdated loophole that has allowed corporate broadcasters to take advantage of artists and their songs for decades.”

That’s it in a nutshell. And in a time when bipartisanship is in short supply, one would be hard-pressed to find a Member of Congress who does not agree that radio broadcasters should pay royalties to music artists for their vital contributions to the stations. The broadcasters will oppose AMFA, as they have always opposed royalty legislation, on the basis that 1) they cannot afford the royalties; and/or 2) their promotional value outweighs the royalty value. These claims are overstated, but even if they were not, the AMFA bill answers both. As describe in an older post:

For smaller stations (under $1.5 million/year), the AMFA caps royalties between $10/year to $500/year depending on revenue and status as either a public or private station. For larger stations and networks, rates would be set, as they for the rest of the performance licensing market, by the Copyright Royalty Board (CRB). Under the provisions of AMFA, the CRB must consider station size and revenue when setting rates and must also consider the station’s promotional value to recording artists. It’s hard to imagine how the deal gets more fair than that.

As composers and artists have noted in many contexts, music is more regulated in terms of price than most other products on the market. While radio broadcasters are free to charge what the market will bear for advertising on their networks—and the largest entities earn billions in revenue—the music artists, with AMFA, are asking for a regulated price of more than zero for use of the only product that draws listeners to the stations in the first place. (Or do you listen to radio for the commercials?)

Further, not only should Congress condition passing AM Radio on passing AMFA, but it should set aside the political theater of a little-known resolution called the Local Radio Fairness Act (LRFA). Since at least 2008, this insincere (one might say cynical) never-to-be-passed resolution is akin to a loyalty pledge to the broadcasters, promising not to mandate royalties for musical artists. For instance, last year’s resolution highlighted the unfounded implication that radio play only benefits the artists rather than the honest assessment expressed in AMFA that the benefits are at least mutual if not generally tilted in favor of the broadcasters.

If Congress wants to mandate that AM radio remain in automobiles for the foreseeable future, so be it. But Members should also acknowledge that the law is a gift to the broadcasters and a precedent for a similar mandate for FM in the future. As such, it is only fair that Congress finally require American radio stations to pay artists for the music without which many radio stations would have little or no value whatsoever.

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Photo by Ababil12

Cars and music are so symbiotic that many contemporary vehicles could be mistaken for high-tech sound systems that also happen to take us places. I remember when popular music was only available on AM radio stations, and we’d listen to Steve Miller or Wings or the Jackson 5 playing through tiny, sibilant speakers mounted in the center of the dashboard. Those days are LONG gone, of course, and although AM radio is a relic as a music platform, musical artists might want to tune into the legislative progress of the AM Radio in Every Vehicle Act because it just might leave them hitchhiking on a lonely highway. Again.

Introduced in May by Senator Edward Markey, along with an identical bill in the House sponsored by Representative Josh Gottheimer, the AM Radio legislation was presumably drafted at the request of the major broadcasters seeking to extend the lifespan of terrestrial radio in a market increasingly dominated by digital options. Specifically, the bills are a response to auto manufacturers who have discontinued, or plan to discontinue, production of new vehicle sound systems capable of receiving AM signals. Likewise, makers of electric vehicles (EVs) have shunned AM because the powertrains cause electromagnetic interference at those frequencies.

More broadly, Autoweek, in November 2022, stated, “Auto companies consider deep-sixing radio for the same reason they ditched the CD player—it costs money and takes up space and resources on the valuable digital dashboard.” While some automakers testified in hearings that Congress should not dictate their product decisions in a changing market, others have since agreed to keep AM radio for now. Admittedly, it does seem as though forcing auto manufacturers to carry the AM signal in all cars in 2023 is a bit like requiring computers to still come with floppy drives.

Meanwhile, it is not hard to imagine how today’s AM Radio mandate, if passed, could serve as a precedent for an FM requirement in the future. And this would be acutely relevant to musical artists because it would extend the lifespan of terrestrial music broadcast, for which performers receive no royalties.

Section 106(6) of the Copyright Act protects the right to publicly perform sound recordings by digital transmission only, and recording artists have been trying for decades to amend the law to include terrestrial radio, arguing that they have long deserved a share of ad revenue earned by stations playing their music. Every time the issue has come before Congress, lawmakers have sided with the broadcasters, but in June 2021, the American Music Fairness Act (AMFA) came closer to gaining approval than the broadcasters might have expected. Reps. Ted Deutch and Darrell Issa stood on Capitol Hill among a group of performing artists, including Dionne Warwick and Sam Moore, to announce AMFA, and as Rep. Issa told reporters that day, the longstanding rule of “not one penny” is a bad faith arrangement that needs to be made right.

The United States is unique among major markets for its failure to pay royalties to musical artists for traditional (terrestrial) radio play, and this despite billions in ad revenue that simply would not exist without the music. Additionally, because U.S. radio does not pay royalties to any artists, American performers are typically excluded from royalty opportunities in foreign markets as well as at home. Thus, it could feel like an all too familiar gut punch if Congress were to swiftly pass AM Radio in Every Vehicle without passing the American Music Fairness Act (AMFA) at the same time.  

Although terrestrial radio may be shrinking—slowly crossfading to digital platforms—there is clearly enough terrestrial broadcast that iHeart, Cumulus, et al. are willing to fight the passage of AMFA to avoid paying musical artists a fraction of their billions in annual ad revenue. And as if it were not obvious that the local radio station is as rare today as the local newspaper, NAB does not hesitate to play the small-station victim card in opposition to Music Fairness. In a December 2022 statement thanking House committee members for voting against AMFA, NAB writes:

The American Music Fairness Act would mandate a new performance royalty on free, local radio stations that would jeopardize local jobs, prevent new artists from breaking into the recording business and harm the hundreds of millions of Americans who rely on local radio.

Of course, NAB omits the fact that AMFA establishes fees as low as $10/year for truly small operators, just as they omit the fact that, for instance, over 800 “small” stations in the U.S. are owned by one mega-corporation called iHeart. As for “preventing new artists from breaking in,” that’s a specious claim. Music is the only reason anyone tunes into certain radio stations, and if a station fails to play what someone wants to hear, the station will lose the listener not the artist. Because in case National Association of Broadcasters missed the memo, music discovery for the two youngest generations happens on a whole bunch of platforms that ain’t radio. 

In a September 7 statement, NAB praised the 150 House cosponsors of the AM Radio bill, stating, “The incredible bipartisan support the AM Radio for Every Vehicle Act has garnered in just a short time is a testament to the integral role AM broadcasting plays in informing, entertaining and connecting Americans across the country.” Perhaps. But frankly, the bills offer so much political cover—from playing a role in the Emergency Alert System to allegedly protecting conservative talk shows—that it’s possible few Americans will care whether Congress may be handing a gift to Big Radio.

But if AM Radio in Every Vehicle does become law, it will be hard to ignore the faint aroma of protectionism for an industry that needs no protection. Meanwhile, the musical artists, including background performers you’ve heard but never heard of, could use a little support from their representatives and finally receive a fair share of revenue from the market they made possible in the first place. If Congress is determined to suddenly mandate more terrestrial radio in vehicles, then it should also decide to finally protect the musicians who are often the only reason we enjoy the ride.  

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Photo by: CelsoDiniz