This blog post fails to understand that performance royalty rates are not paid only to record labels, but also to independent artists that promote themselves. Internet radio, like Pandora, is not obligated to play specific music - as with terrestrial radio, ClearChannel, and top 40s. In fact, the music selected is based on the user’s preference and their music library is vast. Despite this bill, the RIAA’s profits will continue to decrease as more musicians are choosing to produce, publicize, and distribute their own music on the Internet. As such, these performance royalties will be going straight to the musicians themselves, as long as they are not signed with a label. I think this bill is a great way for musicians (not signed with a label) to receive some form of income in addition to live music and merchandising. Considering royalties for publishing and songwriting is managed by ASCAP, BMI, and SESAC, performance royalties may be the only way that independent artists are able to receive 100% of the profits for having their music played.
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