Broadcasters Push Back As Senate Revives Radio Royalty Fight.

The issue of whether radio stations should pay a performance royalty was up for debate in a Senate Judiciary Subcommittee on Tuesday. It was the first time the topic has been considered in the Senate since 2009. And if the 75-minute hearing is any indication, not much has changed over the past two decades. That includes the appetite for lawmakers to get between broadcasters and the music industry.

The hearing drew just a handful of Senators, all of whom support the legislation. But Subcommittee Chair Tom Tillis (R-NC) thinks interest is stronger than the poor turnout suggests.

“I think we’ll see some action,” Tillis said, saying there’s “a growing sense” in Congress that the issue needs to be resolved after 17 years.

But the numbers cast doubt on that assessment. A quarter of the Senate and 216 House members — a near majority — have gone on the record opposing any copyright law revisions impacting AM/FM airplay. Backers of a new fee on stations point to the non-binding nature of the resolution, but it has effectively stopped legislation from advancing for years.

“This is an archaic injustice that’s been around for a long time — if you work hard, you should get paid,” said KISS co-founder Gene Simmons. He acknowledged that radio promotes musicians, but said artists would benefit from radio royalties — especially early in their career. “I’m not here to demonize radio stations. We need each other,” he said. “But one of those two is making a fortune, and the other one for doing all the hard work is getting zip.”

The hearing left little room to make the case against a radio royalty. “I’m a little bit surprised radio is being demonized the way it is,” Inner Banks Media CEO Henry Hinton told lawmakers at one point.

Supporters of the proposed American Music Fairness Act (S. 326/HR 861) embrace carve outs that would mean some stations pay as little as $500 a year. But Hinton said more than 4,000 stations wouldn’t qualify. And even if they did, it is another in a stack of fees being slapped on radio stations by the government and music industry.

“There are a lot of small market broadcasters right now that are barely hanging on and understand it’s not $500 — it’s another $500,” Hinton said, noting BIA data shows industry revenue is down 20% since 2019. “I want to remind people that this ecosystem that we operated has been working for both the radio industry and the music industry for 100 years,” he said.

Hinton also shared a letter from country WQDR Raleigh (94.7) PD Mike Biddle, who reported he had 16 calls from label reps in the last week. “The promotion that radio stations provide is phenomenal, and it continues to be phenomenal,” Hinton said.

But SoundExchange CEO Mike Huppe, whose organization would likely collect the royalties, dismissed the promotional angle. He told lawmakers that sports leagues presumably get the same promotion when stations air games, but no one is suggesting broadcasters not pay for sports rights. “I don't know why music should be any different,” Huppe said.

The hearing brought no mention of the music industry’s attempt to tie the royalty issue to efforts by broadcasters to require a mandate for AM in dashboards. It’s likely to remain part of supporters’ playbook, however.

If the American Music Fairness Act does somehow win congressional approval, Simmons — who is close to President Trump — thinks he backs the effort. “I know the President well enough, and he will sign this,” he said.